I was glad to have the opportunity to run through the Capital Gains Tax (CGT) policy released by Labour yesterday on Radio Chinese Voice immediately after Question Time.
To give a simple example to the Chinese audience, I said that every dollar from salary or wages you earn you pay tax. But if you have an investment which earns a much greater profit, you are not required to pay tax.
When talking about CGT, it is also important to note that aside from New Zealand, Switzerland and Turkey are the only two other developed countries which don’t have a Capital Gains Tax.
What is more telling is an example given by Labour Finance Spokesperson David Cunliffe yesterday. New Zealand is in a financial hole with a record Government deficit of 16.7 billion dollars and 142 billion dollars of overseas debt but National’s only solution is to sell off our treasured state assets.
Since coming into office, National has looked after their privileged few mates pretty well, but what about the ordinary many and New Zealand’s future?
I would like to quote an email I received from a Chinese constituent (name withheld)
“What about the financial recession? It stemmed largely from speculation; in no way has it helped to grow the economy but created crisis.
Those creators pocketed hefty cash, smiled and went. Good on you Labour, a Capital Gains Tax should have been brought in long ago.”
For financial savvy Chinese, it is not hard to understand that to build a modern, equitable society a progressive tax system will work but National’s regressive tax system will not.
Labour’s policy is for all New Zealanders and our future.