Thursday, September 10, 2015

Why we need a capital gains tax

In case you needed another reason to support a capital gains tax: the median Auckland house "earns" $345 a day:

Auckland house prices were up $125,950 on last year - or $345 a day - according to sales data out from the Real Estate Institute.

The city's median sale price rose from $614,050 last August to $740,000 last month and prices were up $5000 since July.

To put that in context, if the median Auckland house were a person, it would earn more than 97% of New Zealanders. And its owners get that tax-free.

The idea that someone in the top 3% would pay no taxes is one that would be rejected by anyone outside of the ACT Party. But its the situation now. And we should not tolerate it. This obscene, unearned rent should be taxed, and the money spent on social housing.