Labour recently announced a 28% capital gains tax on rentals, batches and commercial properties. Politicians say it'll make housing affordable, but the data says otherwise.
Luke and Mikey break down why this won't work: no country has ever lowered house prices with property taxes, wealthy people will just borrow against assets instead of selling, and the revenue projections are fantasy. To get $965 million in year three, they need $3.4 billion in property gains - in this economy?
New Zealand is taxed up to your eyeballs. Everything you touch has a tax, levy, or fee.
We cover why Australia's CGT didn't stop their property ponzi, how governments get addicted to property tax revenue, and why this policy is 20-30 years too late. Plus the harsh reality: if you want to disincentivize property investment, you needed this before we financialised housing.
Capital gains tax won't save New Zealand. It's just another way to extract money from people who actually build wealth.
Find Mikey:
https://guardiansmith.co.nz/
https://instagram.com/officialmikeysmith
Amy from http://Levridge.co.nz has come on as a sponsor of Keep The Change to help people with their financial planning.
Stuck? Find Amy : amy@levridge.co.nz
Instagram: https://www.instagram.com/amy.levridge
Website: https://www.levridge.co.nz
Generate are supporting my vision to improve the financial literacy of 100,000 kiwis by sponsoring Keep The Change. Cheers Generate. Head to https://www.generatewealth.co.nz/change/ to find out more.
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