While the finance minister blathers on about fairness and wellbeing, I think the eight proposed new taxes are an $8 billion tax grab that’s driven by envy and blind ideology and has nothing at all to do with fairness.
Where’s the fairness for older Kiwis and baby boomers who’ve worked and saved hard all their lives to afford a few assets like investment rental properties and holiday homes - only to be hit the hardest when they should be enjoying their retirement years? Where’s the fairness for those of us who’ve embraced KiwiSaver, only to find out that any gains made through that investment will be taxed under these proposals?
These taxes will apply to every small business, will rip the guts out of rural New Zealand and create an unfair playing field. Complicating our tax structure will only discourage investment.
National has a proven track record of managing and growing the economy. We believe the tax burden should be reduced, not increased, so we would repeal any Capital Gains Tax and the unfair regional fuel tax that’s adding to the costs of doing business here on the North Shore.
Many constituents have talked to me as their local MP about their fears of the unintended consequences of a Capital Gains Tax. To avoid or delay paying a big tax, business owners are highly likely to stay on rather than sell or hand over their businesses to families, which is exactly what’s happened in the United States, along with the ‘mansion effect’. With no tax on the main family home, people are likely to invest even more money into a large mansion that they stay living in for much longer than suits them and their families, in order to avoid the tax. What’s next - death duties?
There will be even more of a shortage of rentals; a utopia for tax lawyers, accountants and iwi advisers, with iwi assets likely to be exempt. Billions of dollars will be spent on compliance; and with a stagnating economy investors understandably will take fewer risks and invest less if there’s more tax to pay.
We simply can’t afford to discourage investment and hurt our international competitiveness. Having always argued ferociously against a Capital Gains Tax, Winston Peters has now become submissive and missing in action with his support for this huge tax grab agenda.
If you are a North Shore resident about to have your life turned upside-down by a tax designed purely to extract as much of your lifetime investment as possible, you should be worried, so please contact me to discuss your concerns.
National rejects these big new taxes because they are not fair and they will undermine the Kiwi dream and our way of life.