A Labour Government would impose a broad based capital gains tax at 15 percent and a top tax rate on income over $150,000 at 39 percent, the party said today when it announced its economic development policy. There are a range of exceptions for the capital gains tax, including family homes. Itis estimated to raise $26 billion over 15 years. The party said the increase in the top tax rate would affect only about 2 percent of the country's top earners. Party leader Phil Goff said the plan charted a course for a stronger, more resilient economy, and there would be no sales of state owned assets. Labour has previously announced that the first $5000 of income would be tax free, and that GST would be removed from fresh fruit and vegetables. ``This tax switch is about creating a fairer tax system,'' Mr Goff said. ``In fact under Labour the overwhelming majority of kiwis will end up paying less tax, not more.''
