41. How long for the closing of the tax loophole to take effect and how do we know a future government won’t rescind any tax cuts?

41. How long for the closing of the tax loophole to take effect and how do we know a future government won’t rescind any tax cuts?

Answer

There’s never any guarantees with tax. A government could raise them tomorrow and not tell you they’re going to. The closing of the loophole will not be fully achieved for some time. This is on purpose because we don’t want to collapse house prices, we want to have them tread water so incomes can catch up. The way to do that is to make the deemed taxable income on capital only small to begin with and wind it up over time until fairness is restored. How long would that take? Depends on the reaction of house prices.