Clark David: Taxation (Annual Rates Employee Allowances and Remedial Matters) Bill — In CommitteeText is incorporated into the Bound VolumeClark David: Taxation (Annual Rates Employee Allowances and Remedial Matters) Bill — In Committee[Sitting date: 17 June 2014. Volume:699;Page:18581. Text is incorporated into the Bound Volume.]Dr DAVID CLARK (Labour—Dunedin North):I may have beaten the Minister of Revenue to his feet and I apologise if that is the case. I want to build on what my colleague David Parker has said because it is also interesting that the National Business Review was recently asking the very same set of questions. We know that members on that side of the Chamber are fond of the argument that a capital gains tax already exists in a certain form and that capital gains are being collected and that there is no real need to change the law even though the Minister is not able to say whether that percentage is closer to 100 or closer to zero.But what was also interesting was that when the National Business Review put in an Official Information Act request to the Inland Revenue Department it found that the department was not able to say the extent to which it follows up on these transactions the extent to which it looks for stagging the extent to which it investigates nor the extent to which in dollar amounts it collects revenue from following up on these stringent rules that the Minister is so fond of and is so fond of putting forward as an example of why a capital gains tax should not be introduced.It is curious that we have a Minister who trumpets the benefits of a broad-based tax system but is not yet convinced of the merits of a capital gains tax despite the world’s leading economists recommending it and despite the IMF the OECD Treasury and every other tax advice expert recommending broadening the base. The Minister in a speech that he delivered recently to a learned audience trumpeted the benefit of the broad base but seemingly he was not able to make the connection to broadening that base further to ensure that we have a level playing field for everybody who is interested in investment.So when the Minister steps to his feet I would like it if he could add to the bit of information that David Parker asked for but I would be grateful if he could also address the questions around prosecutions by the Inland Revenue Department for tax avoidance on that capital gains legislation or default legislation to which he referred in the Finance and Expenditure Committee. And I am sure that many of those following the debate at home would be delighted to learn that the wealthiest property investors were also being asked to pay their fair share of tax because the statistics that we have that are recent show that indeed a very very low proportion of those with high net worth in New Zealand pay tax—that is they do not declare wealth that sees them on the top tax rate. They do not declare income that sees them on the top tax rate despite having a significant amount of wealth. Above $75 million the majority do not declare themselves to be on the top tax rate.So when the Minister steps to his feet we will all appreciate his explanation on that front. The tension is building. I shall not talk too much longer because we are all waiting to hear what the Minister has to say. He has been remarkably quiet in Part 1 of the debate despite belonging to a Government that trumpeted the tax rates that we are now confirming. Once upon a time it trumpeted those tax changes that are now widening the gap between rich and poor. Suddenly Government members have gone quiet. They seem content to see the wealthiest few get ever richer while the other 90 percent struggle to achieve the Kiwi dream of owning a home struggle to achieve a decent paying job—we know that median wage rates are going down—and struggle to get ahead for their families.While all of that is going on we have a Minister who seems to be sitting silent not arguing for the changes that need to happen to make the New Zealand economy grow that get the settings right and that develop the big change that is needed for New Zealand to prosper so that everyone can get ahead and everyone can have a positive start in life. I will sit down now and await what the Minister has to say on this and I think that will be very telling for us all and I expect we will all learn a lot about what the Government really believes in.Part 1 agreed to.