muppetMember@muppetJoin Date: 2003Post Count: 900Cullen prepares ground for new tax
Wednesday, 9 November 2005, 11:29 am
Press Release: New Zealand National Party
John Key MP National Party Finance Spokesman
09 November 2005
Cullen prepares ground for new tax
National Party Finance spokesman John Key says Michael Cullen appears to be preparing the ground to impose a capital gains tax on investment property.
Dr Cullen has confirmed that he has asked Treasury to consider what options are available to slow down the economy.
“From the noises he’s making, it’s clear he wants to pour cold water on the Kiwi love affair with home ownership.
“As Dr Cullen pointed out yesterday, ‘they are not necessarily terribly attractive policy options’.
“Where there’s smoke there’s fire. The Finance Minister does not make those sorts of comments without something in mind.
“Dr Cullen has already shown his appetite for capital gains taxes with his current proposal to slap a new tax on foreign-held shares owned by New Zealand residents.
“A capital gains tax on investment property is a natural extension of that thought process.
“The last time Dr Cullen said he was not without options we saw the introduction of his totally ineffective currency intervention programme.
“Since that initiative failed, he’s been busy searching around in the dark grasping at other straws.”
Meanwhile, Mr Key says Dr Cullen continues to contradict himself.
“While adamantly opposed to personal tax reductions, this Government is about to embark on a huge increase in spending. At the same time they’re saying there’s no plan to trim spending.
“If that’s so, what is the razor gang going to be doing – other than a public relations exercise?”
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And Mr Cullen’s reply,Key should grow up
Wednesday, 9 November 2005, 1:19 pm
Press Release: New Zealand Government
Hon Dr Michael Cullen
Minister of Finance
9 November 2005 Media Statement
Key should grow up
Suggestions by John Key that the government is considering imposing a capital gains tax on investment property are â€œabsolute nonsense,â€ Finance Minister Michael Cullen said today.
â€œThe claim is without any foundation at all and should be completely ignored,â€ he said.
â€œJohn Key knows this. Heâ€™s just playing silly politics and should grow up.â€
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