People who chose to delude themselves about the progressive qualities of Jacinda Ardern and her Labour-led government must be feeling let down today. It has been made clear that there will be no Capital Gains Tax. Even something as minimal as a CGT, something which actually is in the interests of many capitalists, is a step too far for the Labourites.
No doubt there will be attempts to blame Winston Peters and NZ First for scuppering a CGT. However, it is not NZ First that runs the show; it is Labour. Moreover, in 2011 Labour actually had a CGT as part of its election platform. Plus they could have done a deal with NZF on the issue if they were seriously committed to a CGT.
So this is yet another retreat by the Labourites.
Far from being a ‘transformative government’, this is a business-as-usual government, even more economically conservative than Labour was eight years ago appaently!
At the end of the day, however, this really should not surprise anyone. Labour, after all, is just doing what Labour and Labour-led governments have always done – managing capitalism to the best of their ability.
Back in 2011, when Labour was actually promising a CGT as part of its election platform, we ran an article on the subject, which remains highly relevant. You can read it here: Capital Gains Tax: a move to the left for Labour?
For a good selection of our articles on the Labour Party: Redline on the Labour Party