The Government’s proposed Capital Gains tax will put the brakes on Otago small business owners thinking about growing their businesses, Waitaki MP and National’s Small Business spokesperson Jacqui Dean says.
"The reality is that a Capital Gains Tax (CGT) will hammer Otago regional economy and hurt hard working families, at a time when many operators are already struggling with extra costs.
“From the plumber, to the pharmacy owner, to local farmers, I believe this tax will discourage Otago small business owners from investing in their enterprises because the more they grow them, the more they will be hit by tax.
“It will also see them abandoning any thoughts of expansion, or taking on more staff, because that growth will cost them dearly.
"But what’s worse, this tax will punish the long term business owners of the region - the people who have put in the big hours, done the hard work and undertaken the risk through good times and bad.
“They have built up their businesses with the expectation that they’ll reap some rewards when they sell and retire, but a Capital Gains Tax will rob them of all their hard work.
“Instead the rug will be pulled out from under them and they will be punished for their dedication and business acumen by being hit hard with more tax.
“This Government fails to see that its proposed Capital Gains tax will stifle growth and slow the Otago economy.
“In fact, I’ve heard from operators across this region who say that this Government is slowly trying to destroy small business, while others tell me that the stress of running a business at the moment is almost unbearable.
“The Government is sending all New Zealanders a message that the harder you work, the more they’ll make you pay.
“National believes you should keep more of what you earn. I will fight the Government’s proposed tax grab every step of the way and National will repeal it and will not introduce any new taxes in our first term."