Transtasman on house price logic

Transtasman report:

OK, so the Govt wants us to smoke more, which is why it has hiked the tax on tobacco, right? And the whole Kyoto, putting a price on emissions thing: it’s to encourage people to put out more greenhouse gases, isn’t it?

No?

Well consider the position of Labour and the Greens and – as of this week – whoever writes NZ Herald editorials. Apparently, according to this logic, the way to get more houses is to tax them more.

Thanks TT for pointing out the stupidity of their arguments. They want to tax houses more, so they cost less. Yeah, right.

At the moment the issue is supply of houses. There isn’t enough of them, in Auckland or – for obviously different reasons – Christchurch.

In Auckland the question is simply because it’s the only part of the country with net inward migration and a growing population. In short, both Auckland and Christchurch need more houses.

You don’t – unless your grasp of economic incentives is really skew-whiff – increase the tax on something you want more of.

Labour and Greens are against freeing up more land, and want to tax houses more – imagine then!

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