Bernard's at it again...

[Bob Kane]

http://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=11299685

But the landless generations looking in on the more than half a trillion dollars worth of equity tied up in housing will eventually look for ways to tax that wealth and start transferring it to the unlucky generations.
A land tax, as advocated by many serious policy-makers, would help change that 30-year relationship between falling yields and rising values. And not a moment too soon.

Bernard thinks current home owners are immortal.
Someone should tell him that in 20 years time all the baby boomers will be dead or in wheelchairs and all their houses will be sold off - to the current landless and unlucky generation. And at a discount.

[speights boy]

.........all their houses will be sold off - to the current landless and unlucky generation. And at a discount.

To foreigners escaping the ravages of the Northern hemisphere, who will continue to have access to a lot more cash than NZers.

[Davo36]

Yeah Weekend at Bernies sold his house and so is dismayed to see prices going higher. Madness to him.

I agree SB, if we continue to let the rest of the world buy our real estate unfettered, then NZers have to pay global prices for NZ real estate.

[elguapo]

I agree SB, if we continue to let the rest of the world buy our real estate unfettered, then NZers have to pay global prices for NZ real estate.

That is a point many see to miss. You see a lot of people making comparisons between New York/London/Sydney real estate prices and say Auckland is very cheap, but if Auckland was on the same price level, would New Zealand be a better place for it?

[speights boy]

Not if it becomes a centre for using property as a commodity to enable easier money laundering.

[Bluekiwi]

Yeah Weekend at Bernies sold his house and so is dismayed to see prices going higher. Madness to him.

I agree SB, if we continue to let the rest of the world buy our real estate unfettered, then NZers have to pay global prices for NZ real estate.

Wheeled him out again with his rose tinted sun glasses.
You cant even see his lips move but the same message comes out.

[speights boy]

Wheeled him out again with his rose tinted sun glasses.
You cant even see his lips move but the same message comes out.

Land tax - what it could mean for you - New Zealand Herald

Reserve Bank chairman Arthur Grimes, an economist, has been advocating a tax on all land for some years. He suggested at a tax conference last month that a threshold could be set where land worth less than $50,000 a hectare was exempt - which would include most farm land.
But it would make little difference in the suburbs, where land values per hectare typically run into millions.

BNZ chief economist Tony Alexander is sceptical a land tax will ever be enacted, "given the long list of exemptions which would be needed and the outright opprobrium it would generate".

However, he added that it would be logical to remove tax breaks for landlords, such as depreciation allowances.

The question is often asked.
Should we tax income less, and wealth more ?

[Perry]

The question is often asked.
Should we tax income less, and wealth more ?

Real wealth? Or inflationary figures 'wealth?'

[Wayne]

it would be the latter - of course

[speights boy]

Or inflationary figures 'wealth?'

Or deflationary figures wealth = less tax than previous.

[eri]

Land tax - what it could mean for you - New Zealand Herald

The question is often asked.
Should we tax income less, and wealth more ?

watch the wealth get hidden

then watch the calls

for an inquisition

to go after it

want people to save for their retirement?

offer them advantageous saving rates

and favourable tax treatment

[speights boy]

watch the wealth get hidden

Please explain, in detail, how a property is hidden and evades their annual council rates bill ?

[speights boy]

want people to save for their retirement?
offer them advantageous saving rates
and favourable tax treatment

Correct, income will be able to be taxed less if wealth is taxed.
You're onto it.

[Bob Kane]

The question is often asked.
Should we tax income less, and wealth more ?

No.
You should levy the tax when cash is involved.
So income tax and gst is the way to go.
A tax on wealth (you seem to imply property) is an envy tax designed to break up land holdings.

[speights boy]

A tax on wealth (you seem to imply property) is an envy tax designed to break up land holdings.

Isn't that what people are calling for ?
Large holdings being developed and used to house more residents ?

Such as this one.
Ryman adds Tropicana to its portfolio

Tropicana, one of the biggest privately owned blocks of land in inner Auckland, has been sold to the retirement giant Ryman Healthcare.
The 8.92ha farm in the Lynfield/Mt Roskill area was owned by Wilfred Allen "Bill" Subritzky, now in his late 80s.

3 fold effect.
Broadening the tax base,
Reducing income tax;
Freeing up land for development.

Interesting to see you think a land tax is such win, win, win