MEDIA RELEASE: Labour's Signal on Capital Gains Tax Welcomed

Deborah Russell's call for a rethink on Labour's tax policies is being welcomed by Tax Justice Aotearoa.

Labour Party Revenue spokesperson Deborah Russell told Newshub her party is set to review "where they see our policy going on revenue." 

It's a stance welcomed by TJA, who say public support for progressive tax reform is strong.

"It's encouraging to see Labour taking steps toward tax policy changes - as the party's lack of courage on tax contributed to its election loss," says Tax Justice Aotearoa chair Glenn Barclay.

"Our Essential media poll during the campaign showed huge support for taxing all income fairly - including taxes on capital gains. 62% of people agreed that all income should be taxed the same way, regardless of how it is earned."

Speaking to Newshub, Deborah Russell agreed that "we need to do something about the taxation of capital gains in this country" and "it's a large gap in our system."   

She says New Zealanders "now have a pretty good understanding of capital gains taxes." 

Glenn Barclay agrees - and says that once the concept is properly explained, people tend to support it.

“Once people understand that the gains from the sale of assets such as houses and shares is income, just like income from employment, then they realise that our current system is unfair,” says Glenn Barclay.

“This opens the way for meaningful conversations about taxing capital gains. For too long this has been a no-go area in New Zealand politics, with politicians treating the prospect of a capital gains tax as a threat.”

Tax Justice Aotearoa has issued a Briefing to Incoming Ministers (BIM) -  and shared it with opposition revenue spokespeople - as an outline of New Zealand's fiscal challenges - and suggests a number of proposed solutions.