Will’s Word: Labour’s capital gains tax could be the shakeup we need

It's been a few days since Labour launched its capital gains tax, and boy, has the Coalition been quick to rubbish the policy.

There's been suggestion this tax policy has single-handedly given the next election to National, according to some right-wing commentators. I call total rubbish on that. It's game on, frankly, because for the first time in arguably a long time we're having a genuine conversation about fairness.

Fairness is something New Zealand's tax system, some might argue, desperately lacks. Think about it for a second, right now, if you flip a house and pocket hundreds of thousands of bucks, chances are you pay little if any tax on that gain.

But if you work hard every day, clock in, clock out, you're taxed on every damn dollar you earn. That's not fairness. Labour's plan could change that, it puts 28 per cent tax on profits from investment and commercial properties.

Again, I must stress, it's not your family home, it's not the family farm, it's targeted, arguably it's modest, and it's overdue. The Coalition wants you to believe this is a tax on every business in Aotearoa, that it'll scare off investors and tank the economy.

Please. Countries all over the OECD have capital gains taxes. Their economies have not collapsed and might I also say, it's not exactly like our economy is a beacon of hope right now. It's not like our economy is sexy.

What capital gains tax has done elsewhere is shift investment away from speculation and into productivity. Let's not forget what Labour says this will fund: three free GP visits for a year for every New Zealander. That sounds like a visible return for taxpayers.

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Now I'm a bit iffy on universally free things, generally, because if it's so universal, that means the rich and wealthy also benefit from said policy. But when it comes to this particular point, three free GP visits? It’s hard to argue against it.

The truth is, the National-led Coalition is probably rattled. They know this policy hits a nerve with ordinary Kiwis who are sick of watching property investors making a killing, while the rest of us are told to tighten our belts.

Fairness versus privilege, working people versus property speculators. A health system that works for everyone versus one that's constantly underfunded. This policy? It's game on baby. The National-led Coalition should stop rubbishing the policy and start bringing out some new ideas.

That's Will's Word.