Prime Minister uses “T” word

John-Key-and-baby

Ban and Tax are generally left-wing tools. Why is John Key open to the idea of a new tax?

John Key’s trip finished with a headline deal of a forecasted $50 million boost to the tourism industry, but the issue around those looking to come here permanently could also benefit with the possibility of a land tax, it has been suggested

In an interview with TVNZ’s political editor Corin Dann on Q+A, Mr Key discussed the possibility of a land tax on foreign investment in housing in New Zealand.

Mr Key says he thinks relationships with foreign countries wouldn’t be affected by the tax, but admitted offshore investors “probably wouldn’t like it”.

“We wouldn’t do it specifically for one country. We wouldn’t say for Chinese investors you’ve got to have a land tax but if you’re Australian you don’t.

“If we were going to apply that sort of thing, we’d apply it to all offshore investors.”

The Prime Minister says the tax could likely only apply to non-resident investors, rather than those who have citizenship.

It’s probably good politics to keep the idea of a possibility hanging in the event that the housing market starts to dent National’s numbers. And non-resident taxes on investors are likely to play well across non-National voters, while National voters may not like it but it won’t be a deal breaker as it won’t affect their own pockets.

The real solution continues to lie in easing the supply of land for development. Go out, not up. It doesn’t take long to drive out of a city to realise there is lots and lots of space available, and both land and house prices can be eased quite significantly by stopping councils from artificially restricting supply.

 

– TVNZ


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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. 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.

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