Wealth can be hard for the Inland Revenue Department to pin down, and easily moved beyond its reach overseas.
Except the fixed and visible wealth of land and buildings.
Which is why land tax and capital gains tax make more sense than a broad wealth tax.
And land tax already exists as local-body rates.
Which leaves capital gains tax on the sale of fixed property, including the family home.
Susan St John and Terry Baucher have proposed a form of this which, to make it politically acceptable, would effectively exempt the first $1 million of property value, excusing most home owners from this Fair Economic Return version of a CGT.
I hope Labour brahmins will give it serious thought.
Wealth can be hard for the Inland Revenue Department to pin down, and easily moved beyond its reach overseas.
Except the fixed and visible wealth of land and buildings.
Which is why land tax and capital gains tax make more sense than a broad wealth tax.
And land tax already exists as local-body rates.
Which leaves capital gains tax on the sale of fixed property, including the family home.
Susan St John and Terry Baucher have proposed a form of this which, to make it politically acceptable, would effectively exempt the first $1 million of property value, excusing most home owners from this Fair Economic Return version of a CGT.
I hope Labour brahmins will give it serious thought.
https://www.auckland.ac.nz/assets/business/our-research/docs/economic-policy-centre/pensions-and-intergenerational-equity/PIE%20Policy%20Paper%202022-2%20Fair%20Economic%20Return%20revisited.pdf