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Ryan Bridge: Hey Labour, NZ is not Australia
Hey Labour. NZ is not Australia.
To justify their capital gains tax, they point across the ditch.
"Australia introduced a capital gains tax in 1985, and its economy and incomes have kept growing."
This is true but one does not cause the other. Two things.
1. Australia is not rich because it has a capital gains tax. Australia is rich because it has a larger economy, with greater economies of scale, and mainly, because unlike us, they extract minerals and fossil fuels from the earth for the rest of the world to burn and/or make steel.
Their top export earners are iron ore, oil and gas, coal…
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