Rich New Zealanders Oppose Capital Gains Tax

July 26, 2011 New Zealand Taxation

Euros and HouseThere are more New Zealanders who support the implementation of a capital gains tax in New Zealand than those who oppose it, although high income earners are overwhelmingly against the proposal.

On July 24th HorizonPoll published the results of the first nation spanning survey to gauge the opinions of taxpayers on capital gains taxes, since the Labour Party announced its intention to implement the levy earlier this month.

According to information in the published results, nearly 41 percent of New Zealanders support the Labour Party’s proposal for a capital gains tax, and just over 34 percent are opposed to the system. Approximately 18 percent of respondents were still undecided, and 7 percent said that they did not know the best course of action.

The survey showed that high income earners were largely against the tax, with opposition increasing with rising income brackets. Nearly 45 percent of New Zealanders earning less than NZD 20 000 per year were in support of the tax, and 44.6 percent of those earning NZD 20 001 to NZD 30 000 also approved of the idea. However, only 36.6 percent of those earning between NZD 30 001 and NZD 50 000 supported the proposed tax.

Approximately 34 percent of earners who received between NZD 100 001 and NZD 150 000, and 56.5 percent of respondents in the same earnings range were opposed to the tax. The highest salaried taxpayers, earning more than NZD 200 000, were the largest opposition to the tax, with 65.2 percent explicitly objecting to it, and none voicing support.

Photo by Images_of_Money