Tax Balance
Welcome to the New Zealand Capital Gains Party
Our Mission
is to improve the tax balance between the rich & middle class by fixing the problem, which is billions being made tax free on long term capital gains.
New Zealand
has short term capital gains tax that comes & goes depending on whos in government but we have never had long term like most countries do.
The top 10% of kiwis
own roughly 60% of all the wealth & the report below tells us they are roughly only paying 10% tax when everyone else is paying 20%. It is them we are targeting.
Wasteful spending
Some of them are using wasteful government spending as an excuse not to bring in captax, but wasteful government spending costs everyone & is a separate problem.
Future unbalance
Some of them are claiming if they start paying fairer tax now they may get overtaxed later by a future unbalanced government.
Not willing to do the right thing now from fear of over taxation in the future is just another selfish brainwash.
Capital gains used to be a moderate earner
but over the last 20 years its become a big largely untaxed earner. And that's the imbalance.
We will tax all capital gains 10%
except the family home, the bach & the first 5 million of investments.
So it won't affect the welloff.
Once the extra tax
begins to flow in we will reduce tax for the welloff, the middle & poor.
The Wealthy
will only have to pay tax if they sell an asset so it never affects their cashflow.
For Example
if a rich farmer makes 20 million capital gain on his farm when he sells it, he roughly pays 2 million tax instead of no tax.
Many Rich kiwis actually say
" a long term capital gains tax would be fair " as they have a social conscience.
We are a Coalition party
so we will join with other parties & they will manage all other policies.
We will have no policies on anything
other than Capital Gains Tax.
Lets just start at 10%
like we did with GST & future governments can work out whats the best balance.
Because like everything in life its about balance.
Read this article on the IRD investigation
"A country without long term captax
is like a boat with a crooked rudder.
You can tie string to the steering wheel or you can fix the rudder "
Tim Allen
There is no such thing as a perfect tax
& captax will not be perfect, but it will add balance to New Zealand.
It will be a big investment for IRD
And it will take a long time before it contributes.
But eventually kiwis will get an excellent return on that investment.
& it will create more IRD & accounting jobs for kiwis which are producing fair tax.
Is there an alternative tax that may be better ?
We think not. Tax is largely about paying a percentage of ones earnings to their government to run a country. Capital gain is an earning once the investment has been sold.
Some have suggested bringing back stamp duty
Which is a tax that you pay every time you buy a property, which is not an earnings tax, so we dont think thats fair.
Is captax a wealth tax ?
No its an earnings tax. We don't believe in taxing wealth, just earnings.
Is Captax about taxing out of recession ?
No thats a mislead, its simply about getting the richest kiwis paying the same percent of tax as everyone else.
Another mission
of this site is to provide ideas to other parties, journalists & the public.
What happens in the event you sell an investment at a loss ?
You get a refund
Will Captax send capital out of New Zealand ?
No as most countries have been taxing it for decades
Why has labour not brought in a captax ?
They did want to. Captax is a differcult tax to introduce as many middle incomers vote it out as they think they are rich & they think it will cost them.
To bring it in without losing an election requires skillful education. Labour began campaigning on it in 2019 & then the Christchurch mosque attacks happened & they had to abandon it.
We at the Cap party suspect it may require a specialist party to take the bullets to achieve success.
If this is a subject you are interested in
we recommend you visit this site again as we regularly update it with more ideas
Rough
Our policies are only rough at this stage & we will mrapa more details if we get donations.
We are seeking donations Now to start up the party.