Duncan Garner writes:
Yet right now she carries so much political capital she could probably pass two capital gains taxes but that’s not the point. This decision matters next year when Labour is heading into an election campaign.
The environment next year must not be confused with now. She won’t have political capital and trust like she does right now. She’ll also be selling climate change measures in a slowing economy and the jobless numbers could be rising.
And let’s be honest the housing market has gone cold – especially in Auckland. This week at the lunchtime Bayleys Auction 8 out of 8 houses did not sell.
And here’s the real reality check, there was not one bid on any house. Two apartments sold, one for barely the same price as 3 years ago.
So the desired effect has happened, the housing market has cooled and first home buyers are back. It does not need a huge tax shift that could slow the economy even further. This economy needs certainty and confidence not a half baked tax shift that could backfire.
House prices have naturally corrected. The market has been flat for a couple of years now.
A CGT will impose huge compliance costs on hundreds of thousands of New Zealanders and have little impact on house prices.