Saturday, July 16, 2011

CGT, Just a Mirage

And as such will disappear on approach.

Random thoughts:
More relationships ended to legally keep two residences in the pot away from this tax grab.

More use of Trusts so there will be fewer liability dates.

Much litigation to sort out improvements and inflation components of Capital gain.

Legal electronic transfers of dosh to suitable offshore entities beyond IRD's grasp.

Capital outflows to avoid liability.

An explosion of bureaucratic surveillance required to investigate and attempt enforcement.

Creative valuations of homes and curtilage as retiring farmers protect the succession.

Use of the 15% rate to utilise opportunities to reassign income from that liable to 39% to assets at 15%.

Big hit on growth.

So much of the detail will reside in the shadowy "panel of experts" meme.

How come the simple lessons of the universal application of the Douglas GST scheme was totally ignored with the announcement of this grab.

When the growing list of talking heads who have swung in behind this illusionary, "fair" (be buggered), additional tax grab, it is only notable for the complete absence of wealth creators and the few who might possibly fit that category are only saying they would support it if it was greatly simplified and made universal with compensating reductions in other areas of taxation.
That is bleedingly obvious, if this was a reconstruction of tax collection as Sir Rodger's was 25 years ago, it is not, it is ADDITIONAL and targets that ever dwindling category of the successful entrepreneurs.

Purely and simply an envy tax and unless the NACT government get off their collective arses and regain the field it will appeal to enough muppets just as WFF and Free Student loans did.
This is just fairy dust that has been lauded as ground breaking by so many airheads who will just disappear into the dusk when the inanity is revealed, as it will be.

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