Unfair 59 percent capital gains hit under Labour’s 'inflation tax'

Commenting on Labour’s proposal to tax inflation by not adjusting their capital gains tax plans for rising prices, Taxpayers’ Union spokesman James Ross said:

“If Hipkins’ plan had been in place over the last decade, people would have faced an effective tax rate of 58.57 percent on real gains. Pretending that won’t hammer small businesses and drive up rents is a fantasy.”

“Even the original designers of capital gains taxes knew you don’t tax inflation. Hitting people whose assets are worth the same - or even less - in real terms is nothing but a shameless tax raid.”

“Labour’s plan to increase inflation and then tax people for it is unprincipled and unfair. Families and small business owners are being lined up for six-figure tax bills because of a cost-of-living crisis they didn’t create.”