The Tax Working Group has recommended the Government implement a capital gains tax - and use the money gained to lower the personal tax rate and to target polluters. The suggested capital gains tax (CGT) would cover assets such as land, shares, investment properties, business assets and intellectual property. Any gains on the sale of these assets would be added to the seller's overall yearly income and be taxed normally at realisation – meaning a CGT would only take effect when it becomes law. Our regional politcians react:
Clayton Mitchell, NZ First list MP
The independent Tax Working Group's report is out. New Zealand First will immediately begin reading the report and considering its findings.
Once fully considered, the New Zealand caucus will be able to make an informed announcement. Until such time, there is nothing more I can add, other than to say that New Zealand First believes in a fair and equitable tax system.
Simon Bridges, Leader of the Opposition
This is an attack on the Kiwi way of life and will hammer the economy. We were expecting a Capital Gains Tax but this package would go further than that with at least another seven new taxes mooted.
This also fails to meet the TWG's two reasons for being set up – it won't reduce investment in housing and it doesn't deliver on more fairness. It is one of the most onerous capital tax regimes in the world.
This will be a bonanza for tax lawyers because it complicates the tax system and will drive up the cost of living. You can't tax your way to prosperity.
Todd Muller National MP for Bay of Plenty
Our local economy is made up of hundreds of small businesses, orchards, farms, and retirees who have worked hard for years to build success for themselves and their family.
They deserve to enjoy the fruits of their labour, not get a kick in the guts from the Government when they get to the point of selling.
Then on top of the capital gains tax there are eight huge additional taxes, including for the agriculture and horticulture sector where most of our exporters are facing subsidised international competitors.
This attack on our economy, and our community, is completely unacceptable.
Fletcher Tabuteau, NZ First deputy leader
For now we welcome receiving this independent advice and we will be analysing all 99 recommendations within it.
The Government will engage in comprehensive dialogue with New Zealanders. Once fully considered, the New Zealand First caucus will be able to make an informed announcement. Until such time, there is nothing more I can add, other than to say that New Zealand First believes in a fair and equitable tax system.
Todd McClay National MP for Rotorua
This is a huge tax grab on hard working Kiwis. It means plumbers and hairdressers and every other small business owner who works hard to build up their businesses will pay much much more tax but a multi-millionaire boat owner or wine collector in Remuera will not.
The Government's Tax Working Group's recommendations includes 8 new taxes that target those who work the hardest. It is a direct attack on the Kiwi way of life.
National believes Kiwis pay enough in tax and we have promised to repeal the Capital Gains Tax, index tax thresholds to inflation, repeal the Regional Fuel Tax and not introduce any new taxes in our first term.
Angie Warren-Clark, Labour List MP
Our goal at the outset was to make sure our tax system is balanced and fair. That's what the Government will consider as we make our decisions.
The Tax Working Group was independent. It has found our tax system is clear and simple but there is room for improvement. We will now look at ways to address this to make the system fairer and more balanced.
We will make further announcements in April on any measures to enhance the fairness and integrity of the tax system. Our overall objective is to ensure the revenue system is fair for families and businesses and offers balance across the wider economy.
Tamati Coffey, Labour MP for Waiariki
We can't continue to have people in the Waiariki paying their fair share of tax, cheated by those that don't.
Now that we have this independent working group's final report, we owe it to our communities as a Coalition Government, to take the time needed to come up with a collective response package that gives all New Zealanders a fair go.
People in the Waiariki will hear us make further announcements in April, as we move to ensure our revenue system is balanced, backs business and is fairer on whānau.