Asked about $460,000 in tax-free income from capital gains on rental property sales, PM Christopher Luxon says a capital gains tax wasn’t up for debate as it would remove incentive for wealth creators
Interesting to learn that the homunculus that perches on Luxon's shoulder whispering sweet advice into his ear turns out to be an ardent Trump fan, fearful of the 'leftist' Kamala Harris.
It's his method of divide and conquer. Setting himself up as a wealth creator when in fact he is a wealth destroyer. But by doing this he can justify excess for the "wealth creators" while strip mining the production of the minions!!
Weird that the Minions vote for this treatment often??
Thanks Bernard, think I'd go insane if it wasn't for you and like minded analysts.
How the f$÷* does idiot Luxon think 'wealth generation' that benefits nobody but himself is good for the country??? Is he really thick or the epitome of entitled arrogance. Grrr
those who are wealthy enough to buy a residential investment or speculative property are allowed to make an income (capital gain) that is not taxed (unless it is owned for two or less years). this tax-free income is what causes several hundred thousand wealthier New Zealanders to buy investment or speculative residential property. they are NOT "creating/generating wealth" - that term is absurd nonsense that Luxon continually spouts.
weaponised obfuscation: he deliberately uses words that seem like a great idea (wealth creators) but doesn't clarrify that he is only creating wealth for himself.
If they don't pay tax on capital gains, they are littel different to burglars and their capital gains. Real wealth creators in the property sector are those who build stuff.
Textured steel(?) on the backdrop of the dark blue sky with the street light offering some spooky ambience. It's appropriate for the month of Halloween.
They were very scary & we called them Avondale Spiders. As big as your hand & could run very fast if you missed catching with unlidded Agee jar. So fast spent rest of the night afraid.
Does Luxon’s comment “…incentive for wealth creators” imply an acknowledgement of intention to profit from the sale of property? If so, that’s income: IRD should do a double take and have a closer look.
Would love to see someone at ird run the ruler under this one for sure. That is about 2mill in cash, what are his plans for it? Term deposit? Bank shares? Building an art farm? Also who has brought them and do they have connections to clients of government policies ? So many questions
I dunno Luxon, it sure seems like you were in the driver’s seat when the numbers really started hitting the ditch. Has anyone thought to test him, cos from the words coming out of his mouth he sounds high on his own supply.
It took two terms of Labour to reach this kind of executive arrogance from MInisters. Then again, Luxon did make much noise about wanting to move quickly in government.
Also, second time we’ve heard “you can’t tax your way out of recession”, sure seems like the latest focus group-tested line. It’s also total misdirection.
Luxon has lost the plot. Property speculators are the opposite of "wealth creators." They are grubby parasites sucking the lifeblood from our productive economy. All that (unearned) profit that the PM has booked was contributed by the public in the form of infrastructure, services, and network effects (location is all about what is nearby that makes it desirable).
I've lost count of the number of SMEs and entrepreneurs I've talked with lately who are hampered by lack of access to affordable investment capital because everyone has decided that betting on houses is the only game in town. Aotearoa is guaranteed to become a failed state if this doesn't get fixed pronto.
This is the ultimate example of hypocrisy for someone who talks about improving productivity and entrepreneurship and punishing people who take advantage of the system.
Are property speculators “wealth creators”? Ordinary people that work every day are our wealth creators. Crumbs from the table of the very well off are of little help. The economics that Luxon and this government have been promoting have all been discredited - trickle down, austerity, less government, growth built on extraction of natural resources. It’s great to read the similar comments resulting from Bernard’s work.
Last Friday Phillipa Howden-Chapman gave a talk to the Fabians about Kāinga Ora and its demise. Bernard commented on the presentation and asked lots of searching questions. On video here https://www.youtube.com/watch?v=jIZCNgyrUDM - but warning the audio is unfortunately pretty bad in places.
Thank you for this Bernard. If you don't have a disabled loved one you may not be aware of the way this government is trying to tax the contribution to carers. When you have a disabled child their level of need is assessed and as a parent you're given the number of days of respite they think you need to be able to manage being a full time carer. This is paid to the carer you hire as a contribution of $40 for four hours or $80 for eight hours. Prior to this government coming in this was only taxed if the carer was a full time carer. For most parents their carer support was used to give one off contributions to retired family members or other parents in a kind of swap/support scheme. Whaikaha quietly changed at the directive of the Minister their website to say all carer contributions would now be taxed. As such many families lost their carers who were afraid if this once a month $80 contribution was taxed they'd lose part of their pension. Whaikaha then quietly changed it back to say that these contributions *may* be taxed. But the damage was done. So long story short this government loves tax - but only against low income and vulnerable families.
On the idiot PM's logic, wealth creation doesn't occur in any of the countries which tax capital gains. So why do many of them have much higher levels of gdp per capita?
I’d really love to see some analysis on the ‘why’ sitting behind many of these seemingly irrational and disjointed policies. Is there an underlying ideological position, are they the result of lobbying (discrete policies), both, or something totally different? Would welcome any reading recommendations.
Agree - I cannot think of previous National-led governments being so irrational. Even if you consider some more obvious political ideology, this current government doesn't seem to adhere to any of them.
Poor Christopher, he has to sell the family silver to fund his lifestyle now he only has his PM level salary.
Don't forget about his 3 other rental properties (as well as the family home and bach)...
What does ‘wealth creators’ actually mean - they look more like parasites
Interesting to learn that the homunculus that perches on Luxon's shoulder whispering sweet advice into his ear turns out to be an ardent Trump fan, fearful of the 'leftist' Kamala Harris.
I always hated Key. That feeling has moved up to whole other level now.
It's his method of divide and conquer. Setting himself up as a wealth creator when in fact he is a wealth destroyer. But by doing this he can justify excess for the "wealth creators" while strip mining the production of the minions!!
Weird that the Minions vote for this treatment often??
“ Gvt by the rich for the rich” I cant wait for trickle down. Why are the stupid poor not making capital gains? NO CAPITAL!
Patrick Medlicott
Thanks Bernard, think I'd go insane if it wasn't for you and like minded analysts.
How the f$÷* does idiot Luxon think 'wealth generation' that benefits nobody but himself is good for the country??? Is he really thick or the epitome of entitled arrogance. Grrr
Thick
He's both.
he is exceedingly greedy
those who are wealthy enough to buy a residential investment or speculative property are allowed to make an income (capital gain) that is not taxed (unless it is owned for two or less years). this tax-free income is what causes several hundred thousand wealthier New Zealanders to buy investment or speculative residential property. they are NOT "creating/generating wealth" - that term is absurd nonsense that Luxon continually spouts.
weaponised obfuscation: he deliberately uses words that seem like a great idea (wealth creators) but doesn't clarrify that he is only creating wealth for himself.
Definitely not empathetic. Also never had a member of his family have to wait for medical assistance.
The latter
So landlords are wealth creators?
Not if they don't pay tax on capital gains. They are bludgers on society.
Agree
If they don't pay tax on capital gains, they are littel different to burglars and their capital gains. Real wealth creators in the property sector are those who build stuff.
💯 bludgers
The time cleansing pic is epic!
Textured steel(?) on the backdrop of the dark blue sky with the street light offering some spooky ambience. It's appropriate for the month of Halloween.
Avondale spiders are rare now I believe - originally a population of huntsman that established themselves there and would sometimes terrify residents!
Haha, awesome & I love that there is a statue paying tribute to them.
They were very scary & we called them Avondale Spiders. As big as your hand & could run very fast if you missed catching with unlidded Agee jar. So fast spent rest of the night afraid.
Does Luxon’s comment “…incentive for wealth creators” imply an acknowledgement of intention to profit from the sale of property? If so, that’s income: IRD should do a double take and have a closer look.
Would love to see someone at ird run the ruler under this one for sure. That is about 2mill in cash, what are his plans for it? Term deposit? Bank shares? Building an art farm? Also who has brought them and do they have connections to clients of government policies ? So many questions
I dunno Luxon, it sure seems like you were in the driver’s seat when the numbers really started hitting the ditch. Has anyone thought to test him, cos from the words coming out of his mouth he sounds high on his own supply.
It took two terms of Labour to reach this kind of executive arrogance from MInisters. Then again, Luxon did make much noise about wanting to move quickly in government.
Also, second time we’ve heard “you can’t tax your way out of recession”, sure seems like the latest focus group-tested line. It’s also total misdirection.
Luxon has lost the plot. Property speculators are the opposite of "wealth creators." They are grubby parasites sucking the lifeblood from our productive economy. All that (unearned) profit that the PM has booked was contributed by the public in the form of infrastructure, services, and network effects (location is all about what is nearby that makes it desirable).
I've lost count of the number of SMEs and entrepreneurs I've talked with lately who are hampered by lack of access to affordable investment capital because everyone has decided that betting on houses is the only game in town. Aotearoa is guaranteed to become a failed state if this doesn't get fixed pronto.
Maybe we could ask the ANZ CEO how much her bank lends to businesses v property clients.
You definitely cant Austerity your way out of a recession> But you can make the recession bigger using Austerity.
A PM is proud of "creating wealth" by limiting access to a human right to those less wealthy/lucky. ( Yes, housing is a human right https://www.ohchr.org/en/special-procedures/sr-housing/human-right-adequate-housing )
This is the ultimate example of hypocrisy for someone who talks about improving productivity and entrepreneurship and punishing people who take advantage of the system.
Are property speculators “wealth creators”? Ordinary people that work every day are our wealth creators. Crumbs from the table of the very well off are of little help. The economics that Luxon and this government have been promoting have all been discredited - trickle down, austerity, less government, growth built on extraction of natural resources. It’s great to read the similar comments resulting from Bernard’s work.
Last Friday Phillipa Howden-Chapman gave a talk to the Fabians about Kāinga Ora and its demise. Bernard commented on the presentation and asked lots of searching questions. On video here https://www.youtube.com/watch?v=jIZCNgyrUDM - but warning the audio is unfortunately pretty bad in places.
Thank you for this Bernard. If you don't have a disabled loved one you may not be aware of the way this government is trying to tax the contribution to carers. When you have a disabled child their level of need is assessed and as a parent you're given the number of days of respite they think you need to be able to manage being a full time carer. This is paid to the carer you hire as a contribution of $40 for four hours or $80 for eight hours. Prior to this government coming in this was only taxed if the carer was a full time carer. For most parents their carer support was used to give one off contributions to retired family members or other parents in a kind of swap/support scheme. Whaikaha quietly changed at the directive of the Minister their website to say all carer contributions would now be taxed. As such many families lost their carers who were afraid if this once a month $80 contribution was taxed they'd lose part of their pension. Whaikaha then quietly changed it back to say that these contributions *may* be taxed. But the damage was done. So long story short this government loves tax - but only against low income and vulnerable families.
On the idiot PM's logic, wealth creation doesn't occur in any of the countries which tax capital gains. So why do many of them have much higher levels of gdp per capita?
And much higher investment in public infrastructure.
Luton says "...you don't tax your way out of recession."
I see, so we are tax cutting our way into a recession.
I’d really love to see some analysis on the ‘why’ sitting behind many of these seemingly irrational and disjointed policies. Is there an underlying ideological position, are they the result of lobbying (discrete policies), both, or something totally different? Would welcome any reading recommendations.
Agree - I cannot think of previous National-led governments being so irrational. Even if you consider some more obvious political ideology, this current government doesn't seem to adhere to any of them.
They weren't as closely aligned with ACT or as controlled by Atlas as this government is.