Tuesday, July 12, 2011

"A dagger through the heart of growth"

That's what John Key thinks of the idea of a capital gains tax. He's wrong. The "dagger through the heart of growth" is a systematic bias in the tax-system which pushes people towards property rather than productive investment. The "dagger through the heart of growth" is a tax loophole which encourages our farmers to run their farms at a loss so they can reap tax-free capital gains when they sell up to a greater fool. The "dagger through the heart of growth" is allowing the wealthy like John Key to avoid paying their fair share.

That's what economists are saying. But I guess Key thinks they're like lawyers, and that for every one who supports a CGT, he can provide one to offer a counter view.

Let's be clear: Key opposes a CGT for one reason and one reason only: because it would cost him and his rich mates a shitload of money. Those who derive their income from ownership, rather than work, currently don't get taxed on that income. And that is simply unfair. Taxes are not something to be paid by the poor and evaded by the rich. Its time they paid their fair share.