If the Government is serious about reducing poverty and actually fixing the housing crisis, it needs to implement a major change to the entire tax system and not just tinker timidly around the edges.
To create fairness across the board there needs to be a comprehensive capital gains tax where each person declares all income, irrespective of source, and pays tax the same as everyone else.
There needs to be a land tax to discourage land banking and an inheritance tax on estates valued over $1 million.
GST should be replaced with a financial transactions tax and income tax levels should be binded to multiples of the median income, with the first $20,000 income tax-free.
Doing this will help address property speculation and put more money in the bands of those who need it most, directly stimulating the local economy, creating more jobs and ultimately leading to more revenue for the Government.
Isaac Broome, Pukekohe
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