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


Do you want:

  • Ad-free access?
  • Access to our very popular daily crossword?
  • Access to Incite Politics magazine articles?
  • Access to Podcasts?
  • Access to Political Polls?

Our subscribers’ financial support is the reason why we have been able to offer our latest service; Audio blogs. 

Click Here  to support us and watch the number of services grow.

As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story.  And when he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet.   Cam Slater doesn’t do quiet, and as a result he is a polarising, controversial but highly effective journalist that takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him.  But you can’t ignore him.

48%