National finance spokeswoman Nicola Willis, responding to a patsy question set up for her by backbencher Nancy Lu, listed several quotes from Labour slamming the Government’s “tax cuts for landlords” forming what Willis called a “constant barrage of criticism”.
“Tax cuts for landlords became a mantra, it was recited ad nauseam, with one member of Parliament stating this Government has consistently made the wrong choices. They have prioritised tax cuts for landlords, and another stating, ‘we certainly wouldn’t be giving tax cuts to landlords’,” Willis said.
“They [Labour] should eat their words.”
The Government used its patsy question and much of its answers to questions from the Opposition to talk about Labour’s interest deductibility stance and capital gains tax, as Green Party co-leader Chlöe Swarbrick futilely tried to steer the debate to social issues by heckling about homelessness and social housing, while Hipkins and Labour deputy Carmel Sepuloni stared at their phones.
“There have been many reports over the last three years of people calling interest deductibility a so-called tax cut for landlords,” National’s Chris Bishop said, “it seems that position no longer holds.”
Yesterday evening, Hipkins revealed in a routine stand-up with media that Labour would not reintroduce the rule it had heavily criticised National for removing.
Hipkins confirmed Labour would continue to allow residential property investors to deduct mortgage interest as an expense when paying tax.
Finance spokeswoman Barbara Edmonds said the party had “changed our decision” on the deductibility because it had since promised a capital gains tax.
“Yes, they may be getting interest deductibility now, however when we bring in a new tax – it’s a timing issue, whether they get that deduction at the capital gains tax time when they dispose of the property or when the rental income is earned.”
Hipkins said Labour would not have introduced the so-called tax cut for landlords if it had been in government, yet “the question is now where do we go next?”
“Our decision now is rather than reversing that one is to introduce a capital gains tax instead.”
It comes after two potshot-filled final caucus runs for Labour and National, fuelled by Labour’s revelation on interest deductibility and National’s ongoing claims the left bloc would introduce “nine new taxes”, a message it has plastered across election billboards.
“I think it is humiliating and I think you can’t trust these guys on [tax],” National’s Chris Bishop said.
“Anyone who thinks they won’t reintroduce interest deductibility changes, they will. I just think they are dreaming.”
Simeon Brown, who recently took over as campaign chair from Bishop, said Labour was “desperate” and “feeling the pressure”.
Labour’s Kieran McAnulty said he had “no time for Simeon Brown” before appearing to show slightly more warmth for Bishop.
“When they changed campaign chair from Chris Bishop to Simeon Brown, I said to our team, right, we are going to be dealing with a dishonest campaign now,” Brown said.
“I have no time for Simeon Brown; I consider him a dishonest person and that is playing out in this campaign.”