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Property Tax
#1
Should we tax property? I think so.

Seems to me one of the biggest problems facing New Zealand (and most of the rest of the world) is wealth inequality. In NZ the top 1% owns 22% of the total wealth (inc. assets, savings, investments, debts etc), the top 20% own 49% of the wealth.

The way the NZ economy is set up, most of this wealth is tied up in property. So maybe we should tax it?

I don't have an issue with rich people, but as a general rule the percentage a person's wealth that is fed back into the economy is inversely proportional to their total wealth. Poor people have to spend 100% of their income to get by (which is largely spent in local shops etc), rich people have to spend very little of their income to get by, and a large portion of what they spend is overseas (travel, investment, online shopping etc). Having uber rich people ties a lot of our country's wealth up, which I feel must stagnate our economy. The "trickle down" effect has well and truly been disproved at this point.

So, how do we get this 49% of our country's wealth to start flowing again? I reckon property might help. Thoughts?
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#2
don't we have rates already? what's the difference? America has property tax right? they have the OG 1%ers too.
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#3
(16-08-2018, 11:50 PM)████ Wrote: don't we have rates already?

Rates are the same for everyone though ain't they?

You could tax more based on your income and property. But people would probably take issue with being taxed more over things they fairly earn't through hard work (assuming that is the case).
Liams Wrote:make a car out of scrap metal from genie lamps
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#4
No
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#5
(17-08-2018, 11:12 AM)NZs no.3 Wrote:
(16-08-2018, 11:50 PM)████ Wrote: don't we have rates already?

Rates are the same for everyone though ain't they?

no they're based on a combination of land value, house value and potential earnings from the property.
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#6
Rates are only for local councils, so they are similar, but I am more talking about as a government tax. Also, in this hair brained scheme of mine I would expect property tax to be an alternative (or partial alternative) to income tax.

It feels like taxing income is not particularly useful, and taxing purchases (like GST and fuel tax) is down right stupid. They impact poor people waaaaaay more than rich people.

With respect to the states, I think one of their major problems is loopholes. I would agree that the American tax system is shit, but I don't think property tax is the problem there, the problem is mismanagement and the fact that America's government is controlled by money (due to lobbyists).

Having property is inherently desirable, so taxing it (as long as you don't go overboard) won't stop people from wanting it. But also, in the current market it is worth more as an investment than it is as a physical thing. All this achieves is making the rich richer and the poor poorer.
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#7
Let's say the government's pissy about tobacco, so they start taxing it. The tobacco producers don't swallow that, they pass the tax down onto the product. The market is upset, because fewer people can afford to buy, but big tobacco's not going to foot the bill.

Everyone who can't afford to buy is now paying higher rent, making it harder to save for a house (which will now have an extra tax on top of it along with rates, maintenance, insurance, etc.). Those who have multiple properties won't suffer, and those who are the average folk who have just one house will suffer needlessly with an already expensive purchase.

So, no, property tax is fucking stupid.
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#8
Paying higher rent is fine. As long as income tax is reduced. The primary difference between the top 10% and everyone else is wealth through assets (namely property). Adding property tax primarily affects people who own lots of property. Most people don't own lots of property. If you reduce income tax and add property tax at worst it will work out even. However to make it useful you can be intelligent about how you implement property tax. Make it proportional to the number of properties you own for example. An additional thing you could do would be to tax the shit out of empty properties.
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#9
ok, ok, sure.
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#10
(17-08-2018, 09:17 PM)Kalazarc Wrote: tax the shit out of empty properties
I hear that tenants ruin the carpet though. It affects resale value
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