As stated in my previous post, I'm sympathetic to a Capital Gains Tax.
As predicted leftie blogs are a little puzzled by the lack of opposition from the right. Case in point is this quote from 'The Standard'.
Everybody's favourite Tory mouthpiece DPF was strangely muted in his criticism at Kiwiblog. Perhaps that's because he recalls saying, just last year that "… I think the time is right to now take a serious look at capital gains tax"..
Rusted on lefties see the tax as a tool to punish the rich, so naturally they're confused as to why the right don't vehemently oppose it.
I don't speak for the entire 'Right wing conspiracy', but my understanding is that a Capital Gains Tax would help to rectify a market distortion - over investment in property. In theory, the tax would make investment properties a little less appealing & people would seek alternative investment opportunities thereby boosting economic growth (I didn't take economics 101!).
On the flip side, I'm aware of the significant obstacles. With so much money tied up in property, a tax could destroy life savings by causing devaluation. This is major as it effect multiple generations.
Also, as Bill English pointed out, property already is in decline - so the problem maybe solving itself.
But for a leftie, if all you want to do is punish the rich, then I guess none of this really matters.
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