Ryan Bridge: What is the point of the Capital Gains Tax?

Opinion 15/04/2019

The capital gains tax has become a thorn in Jacinda's side.

A problem, a headache, a vote-loser. 

It's the friend you invite to the party because you think it's the right thing to do. Only he shows up slurring, stinking of booze, and set to ruin everybody's night. 

And then you think, what was the point? 

Originally the point was to solve the housing crisis. That's no longer the point. Then the point was to make the tax system fairer. That's no longer the point, either. 

Because, if you watch Jacinda closely, you read and listen to her closely, she's been signalling she'll give in to small businesses and farmers.

In addition, Labour's already let home owners off the hook - they'll all get a free ride, as they should.  

But if Labour goes for anything other than a full-blown comprehensive CGT, as recommended by the Michael Cullen's expensive Tax Working Group, then you've got to ask, what is the point in that? 

Cabinet today decides to 'yay', 'nay' or 'delay' a CGT.

My advice, whatever you do, make sure there's a damn good reason for it.

A reason you invited that loser friend to the property party because the rest of us in attendance need a good explanation.

Otherwise, what is the point?

Ryan Bridge is co-hosting The AM Show.