I see the NZ Labour Party is saying they will support the National Government in introducing capital gains tax on property (http://bit.ly/JSRkE). That's just what this country needs - yet more taxes!
The thing that amazes me about New Zealand is the way the politicians and media seem to have this impression that there are all these 'rich' people out there living off the pig's back who are capable of paying more taxes.
Let's examine one of these so-called rich people. Charlie works in a middle management role in a bank to support his wife and two children. He earns $100K before tax. He will be paying about $30K in tax and ACC levies, which leaves him with about $70K or $1,400 a week. That sounds like a lot of money but let's look at his expenses:
- $500/week goes to pay his mortgage on the relatively modest villa he and his wife are doing up in the weekends
- $100/week goes to pay the rates and insurance on the villa
- $150/week goes on the energy to heat and light the villa (actually this is low, given the price gouging by the Gov't-owned energy companies)
- $100/week goes on petrol for his (modest) car
- $400/week goes on groceries (again a low estimate for a family of four)
- $50/week goes on a myriad of other Government charges such as motor vehicle registration, 'voluntary' school fees, passport fees, etc.
What does that leave our rich man? $100/week to cover everything else:
- Arts/cultural interests
Of course, on most of the above, the Government takes one-ninth in GST. And the Labour Party want to hit him with more taxes? To fund what? Oh yes, to fund their new Ministry of Social Inclusion! WTF?