further comprehensive tax regulations and changes and further
comprehensive Capital Gains Tax on
property. Thank you.
David...
David... A member wants
Speaker. I rise on behalf of the ACT Party in opposition to the Taxation
(Annual
Employment and Investment Income, and Remedial Matters) Bill. And
there are three parts to this bill,
and I'll start
there are three parts to this bill,
that this bill addresses all manner of mischief in our complex taxation
system. And it's a great tribute to
the officials, to the
Ministers from both sides of the House who
have worked on this bill over the
past year, and I might say to the
members of the Finance and Expenditure
Committee that issues such as the
treatment of an
offshore insurance marketplace such as
Lloyd's of London has been
accommodated in this bill in such a way that our taxation
system is neutral towards
activities and raises revenue fairly. So,
I think it is worth acknowledging the
work that so many people have done
on deeply technical and difficult
matters so that our taxation system
maintains integrity. The
second part that I'll draw
maintains integrity. The second part
assessing the annual rates. The tax rates in this bill are
completely unchanged for another year, and for
another year families in
this country, through no fault of
their own, simply because inflation has
increased their
own, simply because inflation has
earnings, but not what they can actually afford to buy, they find
themselves pushed into
higher tax brackets for
brackets for the same purchasing power. And families in
this country on the average wage find themselves
paying thousands of dollars more
every year in income
tax simply because not only the
current Government but the one
before it, for eight long years, refused
to adjust tax brackets and
has pushed more and more people into higher
and higher tax
higher tax rates, just through inflation. That is a great shame,
and this bill tonight should
be giving relief to the taxpayers of
New Zealand and allowing the
people who earn the money to keep more of
it. But the part that's
attracted the most debate tonight is not the
technical amendments, it's
not the tax
technical amendments, it's not the
important and should be given more attention
important and should be given more
attracted the most attention tonight is the
attracted the most attention tonight is the extension,
somewhat surrepticious, as it's been
pointed out,
surrepticious, as it's been pointed
five years to two. You see, if you sell a house, a house that is not
your
sell a house, a house that is not
not go into how the IRD judges whether it's your
primary residence, except to quote Adam Smith, who said
an income tax would be an
intolerable interference in the
let's just say that you sell a house within five years, you will now
pay tax on any capital gain that you
make. Tonight, this Parliament
is introducing a de facto capital gains
tax to New Zealand housing. Let's
make that absolutely clear. And
let's not listen to
the braying from the National Party, who find
themselves in this absurd
position of arguing that a
themselves in this absurd position
test is not a capital gains tax but a
test is not a capital gains tax but
Amy Adams said that that's in the regulatory impact statement, and I
can tell the people sitting at home
that the
that the regulatory impact statement says no such thing. The message
to the National Party is that if you
want to fight socialism, don't
adopt it. If you don't like oak trees,
then don't plant acorns,
because taxes are
then don't plant acorns, because
And if you plant an acorn and you start a tax, it will inevitably
grow, as it is growing in
this bill tonight, Mr Speaker. We have
a capital gains tax being introduced
on houses tonight, and it is
happening because this Government
punishes success, because this
Government
punishes success, because this Government the
punishes success, because this
accumulation of wealth. But also because the previous Government,
in introducing a
test. Thank you, Mr Speaker. Mr Speaker. Andrew Bayly. Thank
you, Mr Speaker. It's a
pleasure to be talking on the taxation
bill tonight. And we seem to be trading
quotes. So, a tax always reminds me
of this quote. It's from Matthew,
Mr Speaker, Matthew,
Speaker, Matthew, Chapter 13. It says,
Speaker, Matthew, Chapter 13. It
more, and he will have an abundance. Whoever does not have, even what