14 July 2011

Labour’s game-changing tax policy comes to the Rangitikei electorate this week with front bench labour MP, Grant Robinson, MP for Wellington Central coming to the electorate to talk about how families here will be affected.

Labour’s candidate for Rangitikei Josie Pagani says she supports the package because New Zealand needs to start paying off it’s massive overseas debt and grow the economy so we get more jobs.

The Labour Party today announced its tax package.

It will introduce a tax free income threshold of $5000, that will give everyone a tax cut, and remove GST from fresh fruit and vegetables. A 15% capital gains tax and a new top tax rate of 39 cents on incomes over $150,000 a year would be introduced.

A capital gains tax targets property and other investments which at the moment pay no tax on the profits made when they sell an investment.

“Why should people and businesses pay tax on their income, but anyone buying and selling an investment house for example, pays nothing? That’s not a fair tax system,” Josie Pagani said.

“This is an an idea whose time has come. It will help us pay off our debt without selling out publicly owned assets, and it will leave the majority of New Zealanders much better off. The family home and inherited assets will be exempt from paying tax on profits. So too will many small businesses.

“A capital gains tax will create an incentive to invest in the productive sectors. That means for example, home-grown businesses focused on new products which help increase our productivity on the farm. The lack of a capital gains tax encourages people to speculate on property.

“The alternative is national’s idea of selling our assets. Labour’s plan means we can retain full public ownership of our assets like electricity, and instead have a capital gains tax that most people will never pay.”

Josie Pagani
Labour Party candidate for Rangitikei

ENDS

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