Capital gains tax not ‘panacea’ for housing crisis, Labour admits
Thursday Aug 7, 2014
Labour and the Green Party have admitted a capital gains tax would not be a ‘panacea’ for New Zealand’s housing crisis. Photo / Doug Sherring
Labour and the Green Party have conceded that a capital gains tax would not be a “panacea” for New Zealand’s unaffordable housing crisis.
The two parties seemed initially flummoxed when a questioner at an otherwise friendly election forum organised by the Public Health Association in Auckland this morning noted that having capital gains taxes had not stopped housing price booms in Australia, the US and Britain.
“I don’t know why they haven’t worked in those countries,” said Green health spokesman Kevin Hague.
Labour health spokeswoman Annette King said Labour’s proposed capital gains tax was aimed at changing the whole pattern of investment, not just at the housing market.