Labour are hammering away about the introduction of capital gains tax again. They must be mad.

The Labour ex-finance minister made this case: someone earning $50,000 a year and paying full tax is disadvantaged by a person earning $25,000 who sells things and makes a capital gain.

In the first place, it's a crime that anyone is on such a low wage today and the sad sack would be forced into selling stuff so he could cover his expenses. Where is the advantage in that? Further, the cost of running a capital gains tax system is horrendously expensive.

We pay enough tax now without capital gains. If they are running the country with a surplus what do they need more money for? Are they being disingenuous about the surplus?

In Canada taxation is 15 per cent on the first $46,605 of taxable income. In the UK it's up to 11,000 pounds – that's NZ$222 odd, tax nil. Somewhat better than New Zealand.

The best way for this and any other government to have more funds is to be more efficient and have fewer hangers-on, advisors and consultants. If you need consultants, give the game away.

A Bourne, Bethlehem (Abridged).