pn566. Be thoughtful not timid: Economist says Tax Reform needed now

 

Auckland University economist  Susan St John says government needs to act now on tax reform if NZ's  housing problems  — the source of much of our inequalities — are to be resolved. She offers a number of suggestions on how.

For example, "Policies are needed to extract more tax from the undertaxed owners of expensive real estate and residential land, both to restrain price rises and to provide a secure revenue stream. But the government has ruled out introducing any new tax. 
"One fruitful approach is to revive the narrative of comprehensive income tax. Using our existing tax system we can expand the base of what is captured under an income tax. The persuasive narrative is that income earned from holding assets in whatever form should be treated the same."

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