Capital Gains Tax

Income gained from capital gains on properties in New Zealand should be taxed as income from other sources is. This would go beyond the current policy of only capital gains from properties sold within three years of purchase being taxed. Capital gains tax rates would depend on the size of the capital gains, and would be administered on a tiered structure similar to that used for calculating income tax rates.

Why the contribution is important

If we are prepared to tax low income earners working multiple low-wage jobs to support their families amid rising living costs, we should also be taxing income earned by doing nothing but owning property. The current system allows for the wealthy to exponentially increase their wealth through untaxed property speculation at the cost of those on the bottom of the property ladder. As speculation increases, fueled by a very generous system which practically invites the accumulation of investment properties, housing prices go up across the board, leaving youth and low income earners struggling to secure housing. Taxing capital gains is much fairer than taxing income, and the tiered system would allow for fair and appropriate taxation of capital gains on the family home as well as investment properties. This extra tax income could be used to subsidise social housing.

by NickiEldridge on May 29, 2018 at 02:04PM

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