In this age of “fake news”, obfuscation, distortion and downright mendacity from political leaders all over the world, it’s harder than ever for us to search for and arrive at the truth.
Take for example Simon Bridges’ utterance on the capital gains tax (CGT), that it represents an attack on the Kiwi way of life. In his view CGT equals bad, no CGT equals good. (Especially for him as he owns four properties).
But the truth is that his government in 2015 introduced the bright line test for residential property — if you sold it before having owned it for two years (the present Government has extended it to five years) you will pay tax on the capital gain. They didn’t call it a CGT because of course National is opposed to a CGT, so they called it a bright line test instead — hoping that no one would notice that the effect of that test then was to tax capital gains on property sold under two years. So the bright line test is to all intents and purposes a CGT. Mr Bridges must surely think we’re all as thick as; he is treating us with contempt.
And how about the description by Federated Farmers of the CGT as a “mangy dog” in an all out sensationalist attack. Why the lurid description feeding into the mix of hysterical reaction to the CGT? Because if they can bash the tax to bits, they can get on with what they’re really here for — this from Fed Farmers Otago president Simon Davies:
“People don’t get into farming for the annual return. To some extent it’s to set up your financial security by having a pot of gold at the end when you sell the farm.
