Capital Gains Tax, Death Duties On Labour's Agenda

A Labour/Alliance Coalition would consider introducing a capital gains tax and reintroducing death duties, Associate Revenue Minister David Carter said today.

Mr Carter was speaking at the unveiling of the Labour Party Taxometer at Canterbury's A and P Show today.

"Last week's launch of the Taxometer panicked Michael Cullen."

"He scrambled and waffled on tax policy, and resorted to announcing that Labour would undertake a full, comprehensive review of the tax system should it form a Government," he said.

"He's essentially saying Labour intends to go into the election campaign late next year without a firm tax policy."

"The policy would be established after the election just as in 1984 and 1987."

"It's a cynical technique to impose a capital gains tax and death duties on the public without a mandate."

"In contrast, National says no to a capital gains tax and no to death duties."

The Taxometer shows that just four spending promises - based on Labour's own costings where possible - exceed its only stated tax increase, even when the most optimistic economic assumptions are used.

"If Labour's current tax policy is to be believed, there is no more money for health, no more money for education and no more money for the police."

"Yet almost everyday, Labour calls these areas underfunded and promises to spend more."

"Clearly, Labour has a hidden tax agenda."

Mr Carter said the purpose of the Taxometer was to keep Labour honest.

He said it was designed to ensure that if Labour promises extra spending to Wellington special interest groups and its union buddies, then it would be forced to explain who would pay for it, and how much it would cost them.

"If Labour won't be honest about the tax implications of its spending policies, National will ensure voters are informed."