Absolutely great read from Bernard Hickey on Hipkins’ wealth tax announcement and the treasury report released yesterday:
That’s it. It will now be almost impossible for a wealth or capital gains tax to be implemented within the next decade or two.
The future of Aotearoa’s political economy will now remain frozen in its stagnant, unequal, unjust, unproductive and unhealthy state for the forseeable future. That’s what our leaders, and ultimately the only voters that matter, have decided. Those hoping to change that frozen landscape should now look after themselves and their families, and/or hope and work for an electoral miracle that gives parties who want such taxes dominant positions in any post-election negotiation.
The idea of taxing someone just for having something feels wrong to me. Tax income, certainly, but any sort of land value or wealth tax just feels wrong to me.
Why? The lack of access to those things(typically land and housing) costs the rest of us a lot of money in inflated prices, so why not tax those who have more than their share?
Because they’re either earning money, if it’s a productive asset, which you can tax, or they’re enjoying what they bought with their taxed income.
It also just comes off as mean spirited, to be honest.
You’re also not addressing the underlying issue, which is a lack of housing supply.