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  1. #181
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    ECON101 - and the government has since 2017 tells us the country needs more new builds and was voted in on that basis. So the question is - if there is demand for them, even massive government funding for social housing and Kiwibuild and underwrites, why haven't they happened? And how does changing tax rules for existing rental properties support more new builds, when they did not happen under the previous tax rules?

    Because reasons?

  2. #182
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    Quote Originally Posted by Bjauck View Post
    Tax is not the answer to everything - although an increase in tax revenue would help to boost government revenue and help repay Covid expenses and debt.
    Easily said, but it very much depends where we sit on the Laffer curve. Seems to me we are very near the peak.

  3. #183
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    Quote Originally Posted by fungus pudding View Post
    Easily said, but it very much depends where we sit on the Laffer curve. Seems to me we are very near the peak.
    With respect to taxation on Investor returns from residential real estate, we are nowhere near the peak. With respect to taxation of wage and salary earnings then we are more likely to be near the peak.

  4. #184
    Speedy Az winner69's Avatar
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    OMG bringing the Laffer Curve into the discussion.

    “How high should the top personal income tax rate be?”

    “Well, the Laffer curve says its got to be between 0% and 100%”
    When investors are euphoric, they are incapable of recognizing euphoria itself.

  5. #185
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    Quote Originally Posted by winner69 View Post
    OMG bringing the Laffer Curve into the discussion.

    “How high should the top personal income tax rate be?”

    “Well, the Laffer curve says its got to be between 0% and 100%”
    That's a silly remark. The trick is to find the point on the curve that is most efficient; or more importantly, to recognise that raising taxes (or prices in business) does not necessarily make for increased revenue (or turnover).

    P.S. Laffer sees 0% and 100% as the two known points that produce the same result. There is always a high figure and a low figure that will produce equal revenue.
    Last edited by fungus pudding; Today at 01:00 PM.

  6. #186
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    Quote Originally Posted by winner69 View Post
    OMG bringing the Laffer Curve into the discussion.

    “How high should the top personal income tax rate be?”

    “Well, the Laffer curve says its got to be between 0% and 100%”
    Capital gain on houses in NZ is not considered income and therefore, does not form in part of the tax revenue by IRD.

    However, what matters to the person investing is what after tax benefit do they see? A) Buy houses or B) Kiwi Saver funds ? Historically it's always been the former that has the choice for making $ - and therefore taxation being of moot interest in the Laffer Curve (maximising efficiency).

  7. #187
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    Quote Originally Posted by winner69 View Post
    OMG bringing the Laffer Curve into the discussion.

    “How high should the top personal income tax rate be?”

    “Well, the Laffer curve says its got to be between 0% and 100%”
    Capital gain on houses in NZ is not considered income and therefore, does not form in part of the tax revenue by IRD.

    However, what matters to the person investing is what after tax benefit do they see? A) Buy houses or B) Kiwi Saver funds ? Historically it's always been the former that has the choice for making $ - and therefore taxation being of moot interest in the Laffer Curve (maximising efficiency).

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