Bill English tries to claim taxes paid by property traders are an effective substitute for a capital gains tax on profits from the sale of investment property yet today admitted he has no idea what proportion of sales are taxed as traders, says Labour Finance spokesperson David Parker.
“The reality is only a small fraction of properties are captured by the tax on property traders. The vast majority earn tax free capital gains and are cross-subsidised by every other tax-paying business and worker in New Zealand.
“A capital gains tax is an essential tool to clamp down on speculators and cool the housing market as well as ensuring investment gets into the productive parts of the economy.
“Instead National penalises first home buyers through LVR lending restrictions, which property investors largely escape.
“Bill English knows this but he won’t admit it.
“The truth is that National refuses to go near a capital gains tax on all investment properties as it is not in the interests of their backers,” David Parker says.