Sir Michael Cullen 


PHOTO: Sir Michael Cullen 

The Tax Working Group has confirmed its support for a broad-based tax on capital gains, suggesting handing back much of the $8.3 billion it might raise over five years through income tax cuts for almost all workers.

Some have criticised the proposed tax as “envy tax”, but working group chairman Sir Michael Cullen said it was wrong that wage-earners were taxed on their full income while “you can earn income from gains on assets and not be taxed at all”.

The capital gains tax proposed by the working group would apply to profits on investment property, land, shares, business assets and intellectual property, but not the family home and personal possessions.