this post was submitted on 27 Oct 2025
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Labour to campaign on narrow capital gains tax, no wealth tax (www.rnz.co.nz)
submitted 2 weeks ago by Auth@lemmy.world to c/newzealand@lemmy.nz
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Glad they are finally doing it and this should hopefully get much needed funding for our healthcare system. Whats shocking to me is that even with all the controversial bits taken out its still unpopular. I swear nz has the most hardheaded people out there.

RNZ-Reid Research poll last month found 43 percent in support of a CGT on investment properties

What is left for people to whine about?

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[–] Dave@lemmy.nz 1 points 2 weeks ago (8 children)

Couldn’t you say the same thing for shares? You bought some shares for 5K, you sold them for 10K and now if you want to buy them again you have to pay 10K. Does this mean you didn’t realize any profit on your 5K investment?

No because the shares (in theory) have value behind them. If they went up overnight, it was because the value of the company changed not because the purchasing power of money changed. If they went up from 5K to 10K from 1996 until now, yes you could say it was inflation. But you also wouldn't pay any tax because we don't have a CGT.

But hey we can be generous and say you get to sell one house without paying CGT in your lifetime. Would that placate the masses?

I... don't know. Maybe it would?

Here's another question though. That old lady/man everyone knows of that owns dozens or hundreds of houses, do you think they ever sold any? They can still accumulate wealth without paying tax by simply hoarding it like a dragon.

[–] TagMeInSkipIGotThis@lemmy.nz 2 points 2 weeks ago (2 children)

That's where a wealth tax works better. Because this tax only applies if you sell, if you have enough assets and lenders are confident they'll continue to grow in value you can just keep buying more and then borrowing against them to cover your expenses year on year.

[–] Dave@lemmy.nz 1 points 2 weeks ago (1 children)

Yeah, so a wealth tax would be that every year you have to declare your net worth and pay a percentage of that as tax?

I wonder what the administration and enforcement cost of that would be. This very narrow CGT has on benefit in that there isn't really much extra admin since most of the relevant parts are already done in one way or another.

[–] TagMeInSkipIGotThis@lemmy.nz 2 points 2 weeks ago

Yep CGT is a simpler system to apply I think, but doesn't address the real problem which is that once a certain amount of wealth has accumulated wealth begets wealth and the vast disparity ends up with a small class of people fully insulated from the problems their horading causes.

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