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The president, Sir Michael Cullen, revealed that the working group on taxation had reached a consensus on the introduction of a capital gains tax, but that it does not. is not supported by all members of the working group.
"We have reached the point where we have a central package around the extension of the capital tax, which is supported by a clear majority of the 10-person working group," he said. he declares.
Cullen said that the minority's objections that did not support his plan related "primarily to aspects of how you do it, rather than whether you do it or not".
But he said that there could be water to go under the bridge before any change is passed and promulgated by the government.
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LAWRENCE SMITH / Stuff
Jacinda Ardern on the question of whether a capital gains tax will be introduced.
The union coalition partner, NZ First, has not yet said whether it would support a law allowing a capital gains tax before the elections, which would come into effect after the elections.
Finance Minister Grant Robertson said the government has "not yet received the final report and no decision has been made".
Cullen said earlier, about opinions about a capital gains tax, that he was "actually quite puzzled".
"The majority of the population supports a form of capital income taxation, but it is not necessarily obvious that you can win an election on this basis.
"What people oppose motivates them more than they argue, which is why all American politics are now negative."
TOM PULLAR-STRECKER / STUFF
The extension of taxation of capital gains is popular, but that may not mean that it is a good electoral policy, says Sir Michael Cullen.
Speaking at an event hosted by Victoria University in Wellington, Mr. Cullen said the capital gains tax was the "last chance" because the situation would become more difficult with the aging of the New Zealand population.
"It's useless to try to do this in 20 or 30 years, when demographic changes have occurred, because the policy will be even more difficult, because an older electorate will be even less likely to support changes in income. of capital. " Taxation.
"It's the" last chance "in many ways for any significant change in this area."
Cullen also revealed that the group was on track to release its final report at the end of January, a month ahead of schedule.
ABIGAIL DOUGHERTY / STUFF
Sir Michael Cullen said the tax working group should complete its report a month earlier.
Cullen said the task force had discussed an alternative option of an inheritance tax, despite an instruction by Finance Minister Grant Robertson, which should be withdrawn.
"We are not supposed to look at inheritance taxes, but a majority of my colleagues in the tax task force seem to have found a partial solution to this problem," he said.
Union Council economist Bill Rosenburg also said New Zealand had a problem of inequality that the government had asked him to resolve.
"New Zealand's tax support and income support systems would require significant work to be able to reduce the high inequality that exists in New Zealand," he said.
He asked why capital gains income should not be taxed while other forms of income are.
John Payne, Tax Manager at the NZ Super Fund and head of the Corporate Taxpayer Group, said he was concerned about the "collateral damage" that could result from the taxation of capital gains.
He also questioned the impact on "productivity, entrepreneurship, risk taking and aspirations".
"After what I've seen, the compliance costs are going to be very significant.
"The working group on taxation should be divided.The only thing that is unanimous is that the group seems to think that there should be a taxation of capital income at the same time. 39, future, "he said.
National Finance spokeswoman Amy Adams said Cullen had "clearly worked hard to convince the majority of the group to support the proposed new tax."
"The government has already expressed interest in the new tax, one of the many poorly designed policies that drive up rents, including the extension of the demarcation line test, the limitation of losses, the heavier regulation and the Prohibition of foreign investment, "she said. .
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