Trans Tasman makes a pertinent observation:
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?
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. Confused? They are. . .
. . .You don’t – unless your grasp of economic incentives is really skew-whiff – increase the tax on something you want more of.
There might be valid reasons for a capital gains tax – though I’m not convinced the negatives outweigh the positives.
But whoever thinks it will increase the supply of houses needs to think again. It won’t.