NZ POLITICS DAILY: Capital gains tax fails to inspire passion

Possibly the biggest threat to the electoral success of Labour’s as-yet-unknown capital gains tax policy is the technocratic element of the discussion.

The technical details and arguments for and against are making the whole topic appear rather complicated and dry.

There is little evidence, at this stage at least, of any great passion about the proposal, but more about the faults, problems, or benefits and appropriateness of capital gains taxes. There doesn’t appear to be any strong left or right political nature to this debate, and although it's a great beltway and policy wonk debate,

it’s unlikely that Labour’s new bold policy is actually going to be one that creates enthusiasm or passion amongst voters one way or another.

We’re already hearing from a bewildering number of economists, accountants, tax experts who are discussing the ins and outs of the potential policy, delivering diverse viewpoints. For instance, TVNZ’s Corin Dann gives his balanced opinion on the proposal, essentially saying he has mixed feelings about it but is glad the debate is occurring. TV3 has reports one expert calling a Capital gains tax ‘reasonably normal’.

In the NBR, Rob Hosking explores some other expert opinions, who mostly seem to downplay the significance of the proposal and the likely benefits, but also pointing out that the state agencies appear relatively divided on the topic.

Elsewhere, the Waikato Times and the NZ Herald have run relatively sympathetic editorials. Gordon Campbell on Scoop is also enthusiastic, but he rightly points out that a CGT is not intrinsically a leftwing policy and that there’s absolutely no reason that the political right couldn’t agree to one as well. So it seems that the proponents of the CGT are running the line that it’s nothing radical, ironically just at time when Labour needs to show that it’s capable of coming up with something exciting and bold.

Also, check out Chris Trotter’s Dom Post column, in which he attempts to refute my recent arguments that New Zealand has becoome characterized by an ‘anti-political and anti-ideological’ age.

Bryce Edwards, NZPD Editor (bryce.edwards@otago.ac.nz)

Today’s content:

Labour’s capital gains tax

Duncan Garner (TV3): Labour wants share of farm and business capital gains

Corin Dann (TVNZ): Opinion: Capital Gains Tax

Rob Hosking (NBR): Labour’s capital gains tax ‘political suicide’

Editorial (Waikato Times): Gains tax is on the table

Editorial (NZH): Goff’s capital gains tax idea shows courage

TV3: Capital gains tax ‘reasonably normal’ – expert

Adam Bennett (NZH): Labour to outdo Nats on debt

John Armstrong (NZH): Goff goes for broke with huge gamble

John Armstrong (NZH): Few gains for either side from tax debate