Originally Posted by
nextbigthing
Banksie and Westerly,
The other day you guys raised some good questions, one was about if a CGT doesn't effect the majority of NZers in terms of paying for it and it benefits them for a (debatably) fairer system, then why wouldn't they vote for it? Good question.
I don't know but I suspect the answer might be this. Take your 'average' kiwi (I'm guessing here) - Mum, Dad, 2.5 kids, two second hand cars, a small house they own and a dog named fido. Dad is a salary earner and Mum works part time for extra $$$. The CGT wouldn't catch them. However, they are working hard and already paying tax on the salary/wages. They're keeping consumption to a minimum now so they can save up and buy a business. Or a rental. Or another type of CGT covered asset. They're doing this because they want to get ahead. They hate the idea of a CGT because they view it that if they are work their butts off paying tax along the way so they can buy an asset (covered by the CGT) they don't want to be penalised for trying to get ahead and taxed again once that asset makes them something. It gives them an avenue to get ahead, some hope and something to work towards.
I'm not necessarily saying this is fair or right, I'm just saying perhaps this is how 60% of NZers feel and why they don't support a CGT. Because they like the idea of being able to get ahead and not be punished.
Just an idea, don't shoot the messenger, I didn't vote on behalf of these people....