Hipkins must clear up Edmonds’ CGT claim before voting opens

Ahead of tonight’s leaders’ debate, the Taxpayers’ Union is calling on Chris Hipkins to correct his finance spokesperson’s claim that Labour’s capital gains tax would not tax inflation, with advance voting opening on Monday.

Taxpayers’ Union Spokesperson Austin Ellingham-Banks said:

“Six days ago, Barbara Edmonds told voters Labour’s capital gains tax allows for inflation, reminding them she’s a tax lawyer while she did it. Four days later, Chris Hipkins said the opposite on Q+A, and Labour’s own policy document backs him.

“Edmonds still hasn’t corrected the record. Voters start casting ballots on Monday, and they deserve to know which version of Labour’s flagship tax they’d actually be getting.

“Tonight Hipkins has the chance to clear it up. He should confirm his finance spokesperson was wrong, and that Labour’s tax would hit gains that are nothing more than inflation.

“Our explainer shows how a rental that rises only with inflation leaves its owner no better off, yet Labour would still take 28 percent of the increase when it’s sold. The median rule Edmonds cited doesn’t change that.

“Either Edmonds knew her claim was wrong and said it anyway, or she doesn’t understand her own policy. Either way, voters are being asked to hand the books to someone who can’t get the basics right.”