TL: DR: As the dust settles on National’s tax cutting, tax raising and spending cutting plan, the challenges to some of the assumptions are getting louder and the winners and losers are becoming clearer including:
Doubts the forecast revenues from a foreign buyers tax and online gambling are achieveable; The Conversation, RNZ,
Challenges to National’s suggestions its rental property taxation changes would put downward pressure on rents, along with fears/hopes of sharp house prices rises after a change of Government; 1News,
Worries National’s 15% tax on foreign buyers of properties worth more than $2 million would breach four of New Zealand’s trade agreements; and, Stuff
Concerns young renters, the childless and disabled commuters would be net losers from National’s plans, given they also include ending free or half-priced public transport for kids, students and disabled and the bulk of the tax cuts are aimed at people with children in childcare who own their own homes. NZ Herald-$$$ (Thomas Coughlan)
In summary, home owners with children in childcare who are also landlords are the winners from National’s plan, while beneficiaries, young renters and the disabled are the losers from the plan, along with the need to reduce emissions because emissions trading scheme revenues are being used to pay for the tax cuts and National plans to encourage fuel use by cutting levies.
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