Alliance calls for Capital Gains Tax

The Alliance Party has called for the introduction of a capital gains tax to tackle unaffordable house prices.

Alliance tax spokesperson Professor Jim Flynn says the introduction of a capital gains tax would help keep home ownership affordable for the average New Zealander.

“In the absence of any political intervention, house prices have continued to rise, and the prospect of owning a home has become even further out of reach for many New Zealanders.”

New Zealand’s house prices have now been found to be less affordable than in comparable countries such as Australia, the UK and the USA.

The National Party response to hand over more power to developers would simply increase the problem of urban sprawl and its associated social and environmental hazards, while having little impact on the real issues, he says.

Professor Flynn says a capital gains tax on all but the family home would discourage investors from buying up more and more investment properties on the grounds that they are taxed less than other types of investment. This would allow prices to stabilize.

“Other key Alliance policies such as low-interest, no deposit housing loans for low income earners and beneficiaries, and a major investment in state housing, could offer a helping hand to younger and low– income people to own their own houses.”

He says a capital gains tax on investment properties would also offer a greater incentive to for those with money to invest in productive New Zealand companies.

Professor Flynn says the overall goal of the Alliance tax policy is to reintroduce a progressive tax system, that phases out GST (initially on food) and introduces taxes such as a Financial Transaction Tax and capital gains tax, with the goal of a New Zealand where all people are educated, well-housed, healthy and in meaningful work.

ENDS

For further information please contact:

Alliance Party tax spokesperson Professor Jim Flynn on telephone 4667024 or email jim.flynn@stonebow.otago.ac.nz

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