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https://theconversation.com/nzs-housing-market-drives-inequality-why-not-just-tax-houses-like-any-other-income-208003>
"The Green Party made waves recently when it proposed to tax net wealth over
NZ$2 million for individuals and $4 million for couples. As part of a broad
range of actions, the policy aims to “end poverty”.
Reactions ranged from endorsement to accusations it was fuelled by envy, but
the debate signalled what could become a major election issue: the wealth gap
and how to fix it.
The claim it amounts to an “envy tax” assumes all wealth has been fully earned
and fully taxed in the first place. But we know that’s not the case. A good
portion of the wealth accumulated at the top is attributable to fortunate
circumstances generating significant tax-free gains.
Inland Revenue’s recent survey of the wealthiest 311 New Zealand families
revealed an average net worth of $276 million. At the same time, we know many
households are struggling with the rising cost of living.
According to Stats NZ, around 155,000 households feel their incomes aren’t
sufficient to meet everyday basic needs. Foodbanks report ever-rising numbers
of families unable to feed themselves.
The major source of this lopsided wealth is the housing market. New Zealand has
seen the biggest housing boom in the western world. Property owners have ridden
the wave to make large tax-free capital gains, while others languish in
substandard emergency housing or are forced to live in garages and cars.
Far too much of our scarce labour, building materials, imported fixtures and
land have been diverted to unproductive high-end housing, leaving too little to
meet the real housing need. Because it isn’t taxed properly, investing in
housing has been encouraged as a way to accumulate wealth."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
