Sir Michael Cullen says he´s rich (a rich prick no doubt) now as he´s earned a lot more since leaving Parliament, from his multiple and nice Government appointed roles !! Suspect he still votes the Left but one never knows with him !!
Printable View
Doesn't take a genius to look up electoral results for well off areas like Epsom , Tamaki to see that they are decidedly right voting.
http://www.stuff.co.nz/national/poli...nked-to-income
Fom MSM reporting of todays announcements
"The TWG's interim recommendation is that if the Government was to widen the taxation of capital gains, it should do so by extending income tax to more forms of capital gains – rather than introducing a new tax as such, he said.Tax could apply either when people sold assets such as investment properties or shares, or a second option was that people could be required to pay tax more regularly on the value of money they had invested – in a similar way to how some investments in foreign shares is currently taxed – he said.
In either case tax would only apply to assets bought after the tax came in, Cullen said, rather than assets they already owned."
So just hinting at normal income tax for capital gains. Then the question will be what, if anything, will be excluded ? Private homes, inheritance etc etc
IN the Netherlands you are taxed each year from memory 4% on the value of your assets outside your home on anything over 25k Euro. That is a killer if you want to invest in equities or anything for that matter like a second home. I hope the COL do not get stupid ideas like that.
Does any body has link to how to work out WACC with share trading please?
I think a CGT on shares (without a CGT on the family home or PIEs) would further reduce NZers share investments in favour of building up the nest eggg of an expensive home. It is not as though share investment is prevalent in NZ in the first place.
The TWG should also address the fact that investors in fixed interest are currently taxed on the inflation aspect of their returns whilst other investments currently have tax free capital gains due to the impact of inflation.
However - realistically - in NZ the interests of individual investors who invest in shares will be given scant attention as there would not be many votes in it. Whereas the treatment of real estate will have greater electoral impact.
"However - realistically - in NZ the interests of individual investors who invest in shares will be given scant attention as there would not be many votes in it. Whereas the treatment of real estate will have greater electoral impact."
This is very depressing , but also so true :scared:
Interesting points. I think Cullen has good points. viz:
Even though most people in NZ support a capital gains tax, it is generally not a burning issue for its supporters. Also, with the ageing population it is likely that support for a capital gains tax will diminish - oldies being more reliant on investments.
I think 777 just confirmed Michael Cullen's concern that it might be now or never for a capital gains tax.
Although some of the headlines I've skimmed sounds like the tax working group can only come up with half arsed proposals that are politically palatable.
Don't worry 777 I see Simon Bridges has promised to repeal any capital gains tax.
He won't need to as IFRC a capital gains tax won't be enacted this term and they won't get a second unless they get away with less than the 5% bar for the other losers. And then that may even be a struggle. Mind you I don't think Simon will be the one having to make the decision.
Definitely if he doesn't win the next election. although he is popping up a lot in the media which is always good for a politicians standing. A bit like Judith Collins was popular in the media for a while but she comes across as a nasty bi*ch to me and maybe one of nationals strong links to china and the Chinese voters in nz.
TWG expected to deliver their recommendations this month https://www.stuff.co.nz/business/109...-it-would-work
Haven't seen much discussion of the most relevant outcome for this forum, which is that CGT will affect all local equity market investors.
It seems like the PIE fund regime will now incorporate a deemed rate of return tax for local equities, much like the FDR regime used for foreign shares.
Meanwhile all shares held on a segregated basis will be subject to a CGT on realised gains.
I guess the implication is you want your growth stocks held in a PIE fund, and dividend stocks held in their own account.
Well as nothing definite has come from the TWG then it is all speculation on what could happen.