Tax proposal for NZ govt – Wealth Tax and Capital Gain tax

The New Zealand Minister of Finance is canvassing new avenues to increase government tax revenue. He has asked you to
advise him on the introduction of 2 new taxes:
1. An annual wealth tax, which would impose a levy of 1% on every taxpayer’s net wealth (i.e. assets minus liabilities) measured at the end of each year;
2. A capital gains tax, which would impose tax on the capital gain derived from the sale of any asset where the sale price exceeds $10,000.
Required: Write a report to the Minister evaluating the 2 taxes separately in terms of their:
(i) effectiveness in providing the government with revenue; and
(ii) conformity with the following generally accepted principles of a “good” tax:
Administrative convenience.
Economic efficiency (tax neutrality)
Ease of compliance.

Conclude your report with a recommendation on which (if either) of the 2 taxes you prefer and summarise the reasons for your choice. NOTE: NZ has no wealth tax and capital gain tax. This can be a proposal.