Join! it's $20

21. So you want to tax me on fictional rent?

21. So you want to tax me on fictional rent?

Answer

It is an income tax, income is the benefit you receive, whether that came in the form of money or services rendered. Your house rendered you a rental service. You need to pay its owner rent, that owner needs to pay tax on that income. Where’s the fiction?

Showing 4 reactions

  • James Turnbull
    commented 2016-12-07 22:18:01 +1300
    Oliver noted elsewhere that he’s from Germany …and I’m not shy to say I’m from the UK

    I can only agree with you Julie that the sort of thinking demonstrated here that puts ‘economic theories’ ( which in themselves are largely fictional) ahead of people is utterly destructive and that;s why most of Europe UK, France, Portugal, Spain, Greece and etc are in the mess they are in.

    There’s also little point in comparing Germany with NZ … Germany is a technically advanced high volume manufacturing nation with high volumes of exported ‘added value products … cars for example ) I’m not knocking NZ at all we have some superb high tech industries but they don;t employ many people by comparison. And our exports are largely Primary Products that we export cheaply as logs and then have to buy back expensive overseas processed timber and panel products.

    Money is made by taking raw materials adding time and skill to create finished product – We don’t even have the infrastructure to serve our own construction industry and we don’t have (within NZ ) the wealth necessary to pay for infrastructure to set it up again.

    I’m sure anyone with time could write books on ’What’s different between NZ and Germany and Why What Works There Would Not Work Here!’
  • James Turnbull
    commented 2016-12-07 22:05:30 +1300
    A house is an inamate object incapable of rendering any service to anyone !

    The FICTION is that you want me to pay rent on something I own and which COSTS me REAL MONEY

    THIS IS NOT IN ANY WAY AN INCOME TAX

    A HOUSE IS AN ASSET

    And I do feel the need to ‘speak more loudly’ ( block caps) in order to stress the point !
  • Julie Webb-Pullman
    commented 2016-12-07 19:20:47 +1300
    The fiction is that the Government owns the planet – it DOESN’T. It is the shared environment of the human race – and human survival depends on having shelter.

    The big mistake here is that TOP is basing all its policies on an unabashed economic foundation, rather than a human one.

    Is TOP going to introduce a similar policy for cars? You pay an annual tax on every car because one day it might be an extremely valuable vintage car? Or jewellery? Furniture, that will become antique?

    This policy is a nonsense. Capital gains tax hasn’t worked because it hasn’t been implemented well – fix THOSE loopholes and you might have something – but LEAVE THE FAMILY HOME ALONE.
  • Oliver Krollmann
    followed this page 2016-12-07 10:28:40 +1300