“If we talk rubbish enough, people will just get scared and vote National”
The title is an example of what some NZ media must be thinking right now. Here’s an article on stuff.co.nz. Effectively, what it’s saying is that if Labour’s unannounced capital gains tax goes ahead, rent and house prices will increase because of it.
This makes absolutely no sense. House prices will go down, because people will be less willing to buy houses then attempt to sell them six months later for a profit because of the tax. This means the housing market will be less inflated by property developers and the likes. It will also mean investment dollars will go into productive industries rather than capital industries, leading to a boost in economic growth.
In terms of rent prices, a capital gains tax should not effect this at all. The tax only comes in when you sell the property, so if you are keeping it to rent, you will not be hit by the capital gains tax.
All of these scare tactics are quite pathetic. They have absolutely no rational ground and are just there for political gain, presumably for the National Party.