Labour has announced its detailed taxation policy and economic vision. And it’s been leading the news.
Yesterday on the University campus with three MPs contesting the upcoming election, I got to debate the issue for the first time. I felt I had a clear advantage before we started; the capital gains tax Labour is proposing is all about fairness. And Kiwis like fairness. The Government candidates I was up against tried to defend the indefensible. I think they know the current tax system is unfair. New Zealand is one of only three countries in the OECD without a capital gains tax. Australia has had one for 20 years.
Not only does our policy have fairness on its side, but it also will mean most people are better off as a result. Taxing just 15% of the profits when people sell their second or third property won’t affect many people, but it will mean that other policies become affordable. So Labour will be able to make the first $5000 earned tax free – for everyone.
The capital gains tax encourages investment in productive enterprises, solves our debt problem and makes a whole lot more sense than the alternative. National’s alternative to solving our debt problems is their ‘plan’ to sell our state assets (each paying off only a few months worth of debt) then further cut services, and then what? Hope they get lucky? Everyone knows selling our revenue-generating power companies is crazy; if you’re in a hole, you don’t sell the ladder.
With this announcement, Labour has shown it will be bold and make the tough decisions that need to be made to take our country forward. Our economic plan will allow us to protect our assets, pay off debt and help rebuild the devastated Canterbury region.
The website Own Our Future has all you need to know about Labour’s plan.