Labour's CGT Will Make Housing Affordability Worse
Labour's CGT Will Make Housing Affordability
Labour's capital gains tax, won't do what David Cunliffe says it will, according to the Taxpayers' Union, backed up by a former Deputy Commissioner of Inland Revenue, Robin Oliver.
Taxpayers’ Union Executive Director Jordan Williams says, “Labour are misleading taxpayers if they think a CGT will be a panacea for the housing market. Mr Cunliffe is wrong to say that current tax law does not tax property speculators."
"Income tax already applies to speculators, builders and developers. Taxing the rest of the market can't possibly bring down prices."
Robin Oliver, says, "Under an Australian type Capital Gains Tax a person choosing between investing in a business or buying an even more expensive home will have an increased tax incentive to invest in the home. Gains on the home will be tax-free, gains on the business will be taxable and it will be difficult to use any capital losses the business makes. The playing field is clearly tilted towards home ownership rather than risking money in a business creating jobs."
Williams says, "Ultimately, Labour’s capital gains tax is a tax on entrepreneurship, innovation and risk taking."