Olly Newland Interest.co.nz
Friday 15th March 2013 |
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No matter how often the argument against a Capital Gains Tax is put forward, the subject is still popular among those who, it seems, fail to realise that implementing such a tax will solve nothing.
The suggestion comes up again and again, and it has almost become an article of faith for ‘the left’ some of whom seem to imbue a Capital Gains Tax (CGT) with mythic powers to right all social wrongs.
When the Labour Government of the 1970s brought in a version of the tax to curb rampant property speculation, the result was a further rapid rapid rise in property prices - on top of the 50% rise up until then!
Sellers rather withdrew their properties from the market than pay the tax.
It follows that Less stock = Higher prices. (This ain’t rocket science.)
The ’Property Speculation Tax’, as it was then called, was abolished a few years later by the Muldoon government, and I am proud to say that I was partly instrumental for that. Read more
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