Labour sees sense

1 News reports:

Labour will make no changes to interest deductibility rules for residential landlords if elected, as party leader Chris Hipkins confirms he wouldn’t revisit the settings.

Thi is some rare common sense for Labour. They called it a tax break for landlords, when it was no such thing.

Labour changed the law the last time they were in government to target landlords and treat them different to every other business owner in NZ, by saying they could not deduct the costs of borrowing from their business income. It was entirely unprincipled.

All National did was restore the law so that all businesses are taxed the same – ie can deduct borrowing costs from taxable income.

Pleased that Labour have agreed this is the right thing to do, despite spending three years condemning it.