Early Edition with Ryan Bridge

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

  1. 18 hr ago

    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 mining, LNG, and then farming. Guess where those young people are going when they leave motel city, otherwise known as Rotorua? Probably a mining job Labour wouldn't left them have here. 2. This is about how the tax is applied, because Labour NZ's tax is treated very differently. Let's say you buy a house a rental house today for $1m. You sell it for $1.5m in ten years.  You've made $500k, right? Wrong. Once you take account of how much inflation has eroded away at the value of them money, in real terms you're worse off.  If you went to spend that $500 in ten years, it would get you fewer goods than it would today.  So, after inflation, your real profit might only be $300k in real terms, but Labour would make you pay 28% on the whole $300k. Which is, again, what the Aussies do. They give you a 50% discount on the difference between what you bought the house for and sold it, to account for inflation. They're going harder here, which doesn't seem fair. LISTEN ABOVE See omnystudio.com/listener for privacy information.

  2. 3 days ago

    Ryan Bridge: Centrist voters will be confused so far this election

    If you're a centrist, maybe a softer swing voter in this election, you're right to feel, so far at least, that the whole thing's a bit of a ruse.  The left and right blocs are basically going to run campaigns against each other, rather than for something else.   How do we know this?   Last Sunday the Nats put out budget responsibility rules they so far haven't been responsible enough to follow themselves.   Their main argument here is basically, at least we'll do better than the other lot.   Which, if you're worried about debt, is probably true.   Labour is boxing itself into a fiscal corner.   If it is to be believed, Hipkins yesterday told me he would resign as Prime Minister before introducing any tax being proposed by the parties whose support he would need to form a government.   And he'd sooner walk away from talks than entertain any of them.   So, no inheritance tax, no wealth tax, no land tax, no nothing. Just Labour's CGT.  And that tax, remember, relies on 3% growth in house prices every single year to wash its own face.   If it doesn't, then what?   The problem with ruling out every other form of revenue-raising, while at the same time promising the unions a roll-back of Brooke van Valden's gender bargaining changes, means there isn't just the perception of a hole in the books, but an actual stonking big one.   I'm told Barbara Edmonds is busy beavering away on the books, but will have to pull a rabbit out of a hat.   If you're leftie-left, you'll be mad Hipkins won't go further on tax., If you're righty-right, you'll be mad Luxon hasn't yet balanced the books.  The basis of this campaign though, is going to be attack.  The big parties are not so much telling us how or why New Zealand will be a better place under their stewardship, but rather why it'd be a disaster under their opponents.  See omnystudio.com/listener for privacy information.

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A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

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