12-06-2023, 11:09 AM
(12-06-2023, 10:37 AM)Oh_hunnihunni Wrote: No party is going to bring in a tax that people have no way of covering. It is time though for the tiny percentage who control most of the wealth - and power - and who currently pay less tax than the meanest among us, to ante up and pay their fair share. Most of them have wealth that simply self generates - and that 'dream' needs to wake up and smell the coffee. Not as if they'd really notice it...If you're referring to a CGT what do you mean by "covering it"?
BTW< that Stuff article on Luxon - and the numbers of MPs who are multiple property owners is interesting.
The introduction of a CGT would involve all properties owned by private individuals (and trusts) being valued as at the time of that tax being implemented. A boom time for registered valuers I expect as many wouldn't trust QV to get this right. After that any property sale would have its sale price compared with its recorded value (or purchase price if acquired after the start of CGT) and if an increase in value had occurred then this is taxed as income.
No payment of tax would be required until such time that a (secondary) property is onsold. It's therefore up to the intending seller of the property to factor this into the investment potential of the property as any astute individual does before considering the sale or purchase of major items.
The other option is to adopt a significant stamp duty payment at the time of property purchase as Australia does which essentially captures the same market items but at the top end. A CGT seems to me a more fair and accurate method than saddling the house market with an additional ingoing cost.