Our Team Auckland Central | Tuariki Delamere Banks Peninsula | Ben Atkinson Bay of Plenty | Chris Jenkins Coromandel | Rob Hunter Dunedin | Ben Peters Epsom | Adriana Christie Hamilton East | Naomi Pocock Hamilton West | Hayden Cargo Hutt South | Ben Wylie-van Eerd Mount Albert | Cameron Lord Nelson | Mathew Pottinger New Plymouth | Dan Thurston-Crow North Shore | Shai Navot Northland | Helen Jeremiah Ōhāriu | Jessica Hammond Rongotai | Geoff Simmons Southland | Joel Rowlands Tauranga | Andrew Caie Te Atatū | Brendon Monk Wellington Central | Abe Gray Whangārei | Ciara Swords
- News & Events
40. Why not just narrow the target to residential property call it a tax on imputed rent?
The reason is because a major objective of the closing of the loophole in our income tax regime is to target the way businesses deploy their capital, namely to increase productivity. If you have a business that year after year makes lacklustre returns on the capital it owns, then that capital needs to be put to work more productively - either by the existing owner utilising it better or by it being sold to someone who can. Productive capital is a scarce resource, this policy will raise the supply to those who can get a return on it.
Was this helpful?