OECD says CGT would address inequality and grow the economy

Published: Wed 5 Jun 2013 11:05 AM
Spokesperson for Finance
5 June 2013
OECD says CGT would address inequality and grow the economy
National’s misrepresentation of the OECD’s latest economic survey of New Zealand is cynical bluster and its diversionary tactics should be ignored, says Labour Finance spokesperson David Parker.
“The OECD, like the Labour Party, endorses the Government’s planned return to OBEGAL surplus in 2014/15, but it also highlights that there are myriad social and economic imbalances that must be addressed.
“Rather than looking at the report through rose-tinted glasses, the Government’s time would be better spent implementing policies like a Capital Gains Tax (CGT) that would address growing inequality and our various economic imbalances.
“The OECD says upfront that New Zealand would be wise to implement a CGT to ‘make the tax system more conducive to both growth and equity’.
“It also notes that that, ‘the lack of a capital gains tax in New Zealand exacerbates inequality’ and ‘reinforces a bias toward speculative housing investments and undermines housing affordability’.
“Labour knows that Kiwi incomes are well below the OECD average, and that growth has been sluggish. We have introduced polices to raise incomes, create jobs and address increasing instability in the housing market.
“A responsible government would pull the levers necessary to address these issues.
“Bill English knows that a CGT is necessary but is too wedded to the vested interests that back his party to implement this essential reform.
“Labour is focused on introducing much needed policies that work for all New Zealanders.
“National has given up on rebalancing the economy. Under its watch New Zealanders can look forward to a weakening export economy, higher house prices and rising inequality,” David Parker said.

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