Labour now says its own land tax policy as stolen by National won’t work

Should really be a double face-palm

Should really be a double face-palm

It’s like we’re having a debate with a seven year old:

A land tax on foreign buyers could push up rents and might not have any impact on Auckland’s overheated market, Labour says.

It’s the latest twist since Prime Minister John Key floated the possibility on Saturday — although he doubts it’s necessary.

Mr Key says a tax on foreigners who buy houses would be an effective way to curb demand, if new data due to be released in a few weeks shows they’re having a significant impact on the market.

It would be charged annually as a percentage of property value.

Labour’s housing spokesman, Phil Twyford, says they would simply pass on the tax to tenants.

This from the same party that says the properties sit empty.  But, ok.  Fine.

He wants the Government to explain why that wouldn’t happen.

“A land tax could push up rents and risks having no effect on skyrocketing prices,” he said.

“It’s still highly questionable that land tax of a few percent would deter foreign speculators who last year made capital gains in Auckland of 25 percent.”

I guess this will put resident landlords in a position where they can offer cheaper rents, thereby further dampening the attractiveness of foreign cash competing in the housing market.

Job done.


– Newshub

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