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Mike Hosking: The CGT is gone, but the government's ideology is not


One of the highlights of school holidays was the report of the loss of capital gains tax. It is amazingly reassuring to recognize that once in a while common sense and good logic will prevail.

This is not generally a government for listening. Education and workplace reforms are a good example of winning ideology over logic.

But in the case of the CGT, this argument was so profound that the government's counterbalance so absent was almost dead on arrival from a $ 2 million committee that now sits as a blatant example of how much of our money is ready to spend groups and meetings, that would go nowhere.

And that is the notion of why so many responses to the demise of CGT could be poorly placed. Many argued that National was a great loser, that they no longer had a main board to run next year, and Ardern, in some sort of political genius, flicked the rug out under them.

I'm not sure if the media that went through this line has woken up from the sycophantic spell they've been in for the past year and a half, or they're just fat.

Few, however, could be far from the truth. There are two things to remember. One, the CGT may be off the table, but other tax increases or new taxes are not. Two, this is a government that likes to spend money.

Never forget the tax cuts we could enjoy here right now and have been canceled by this lot, and they were sent out to hundreds of committees and working groups wandering the country who came up with a never-ending series of news.

Every time Shane Jones writes a check for the Provincial Growth Fund, it's your money that isn't in your back pocket. Auckland's disaster, which is off two to three to four, the Lord knows how many billions this is your money. Gas tax is your money.

And so it goes.

The CGT is gone, but there are many other taxes that will consider this land very carefully to make up for the difference. Why? Because, one, they are re-distributors. And two, the CGT is going to quickly raise $ 8 billion. This money was needed for all the promises and must find a way to cope with this deficiency. For example, watch out for a new tax group for high-income people.

The government's ideology has not changed, even though it has one of their mechanisms.

And this is a bit that has a national advantage. It is the difference between the center to the right and the center to the left. Right does not want your money so bad that they favor graft and self-assurance. The left knows best and wants to raise his pockets.

This fundamental philosophy has not changed, and therefore ideological debate is as important and lively as ever.

Let's look at the CGT what it was. The hopeless idea, the hopeless execution that amateurs run out of debate, argued and thought out of the way.

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