Daniel’s Election 2011: New Zealand Labour Party
This is the fourth part of a nine part series, Daniel’s Election 2011. For the first part on the Green Party, click here. For the second part on the Mana Party, click here. For the third part on New Zealand First, click here. When the future parts are posted, they will appear down the bottom with the comments as trackbacks.
The Labour Party has been saying all the things that National has done wrong in the past three years, but the biggest response to that seems to be “Why didn’t you do it in your nine years?” We do need to remember that Labour had three terms of Government to make all the changes they are saying National should be making now.
Capital Gains Tax
Labour has said they will introduce a Capital Gains Tax on everything except the family home. There has been a lot of argument here, with the main question being how do you define a family home in such a way that actually family homes are exempt but other properties aren’t. I have done a number of posts on capital gains taxes, so I won’t go too deeply into it here. For a post on why a capital gains tax won’t have the negatives people are saying, go here. For why Labour is doing the capital gains tax wrong, go here.
As you will see in those two posts, I am quite a fan of a capital gains tax – if it’s done right. It needs to exclude the family home and investments in productive industries. Nothing more, nothing less. It wouldn’t be too difficult to define a family home in the right way. How about, “A family home is a residential property in which no income declarable for taxation purposes is derived from”. Now that wasn’t difficult.
Increased Minimum Wage
Labour wants to increase the pay of those on the bottom from $12.50/hr to $15/hr. Sounds pretty good, right? Everyone loves a pay rise! Except that’s not what’s going to happen.
I know there’s studies to show that when the minimum wage goes up, people do not lose their jobs. And in most places around the world, that’s what would happen. There’s a certain amount of labour that needs doing, and companies will hire people to get it done. But in New Zealand, our businesses really don’t understand that. They have a uniquely narrow view of the world. They only want to look at the next 12 months and what the profit level will be at the end of it. Some just want to look to the end of the current project. What that means is New Zealand businesses would rather abuse their workforce and work them 80 hours a week than pay for two people. Increasing the minimum wage will do two things. Firstly, workers will be treated even more poorly than they are now. Secondly, unemployment will increase. Anywhere else in the world, it wouldn’t happen. Here, it will.
No asset sales
I’ve said it before, and I’ll say it again. If you don’t want asset sales, you should vote Labour. Another option is to vote Green. Another is to vote National. Because National’s policy of using a mixed ownership model is not asset sales as most New Zealanders think it. The left, including Labour, is just using this term to scare New Zealanders. It’s wrong, and by the looks of the polls, they aren’t stupid enough to buy it.
Once again, I’m just going to give you a link to a post I’ve already done on this one. Head here for my thoughts on the matter.
I would have liked to talk about Labour’s tax system, but according to their website, this just involves no asset sales (how is this tax related?) and a Capital Gains Tax. So much for screaming about tax cuts over the past three years…………….
If you want to view Labour’s full policy, I can’t give you one easy page to go to, because Labour doesn’t have one. I’d suggest visiting their website, www.labour.org.nz.
Posted on November 7, 2011, in Daniel's Election 2011, New Zealand Politics and tagged Asset Sales, capital gains tax, Daniel's Election 2011, Election 2011, minimum wage, New Zealand business, New Zealand Labour Party, New Zealand National Party. Bookmark the permalink. Leave a comment.