Tax - What is it for?

[moka]

I view taxation is a way for the gov't to provide 'stability' or 'security' for the country. The private sector can not provide for everything and key issues like military and defense is a good example where no private individual and property provide security for the whole country they're living in. This must be done at a governing level. The "Free Market" Laissez-faire model does not work as it's too individualistic. We can see this with the problems why NZ lacks the high # of housing builds as infrastructure builds are funded entirely by the individual developer (whereas in Canada, both municipal/provincial/& federal fund infrastructures). So when we pay taxes, we ensure our gov't leads our country in a corrupt free, stable, and safe manner.

The problem in NZ is our tax system is not fair. The high income earners comprise most of their wealth in owning tax free capital gain real estate. While the next generation that are not born into wealth, have a more difficult chance in buying their first home. All the incentives in NZ is pushed into owning real estate which is a far less productive asset than owning shares of companies or starting new businesses venture or resource extraction.

The “Free Market” Laissez-faire model is definitely not working with housing in NZ. The current situation proves that the government needs to be very active in building homes for the lower end of the market. A high level of home ownership has many benefits for a country.

https://www.nzherald.co.nz/business/forever-home-the-nation-wide-economic-benefits-of-owning-a-home/SQAQQTNWZ42PLE3AZXBX4MQCUE/

The nation-wide economic benefits of owning a home.
Getting 2000 people out of a rental into their forever home could save the Government $17.5 million over 15 years.
The findings are part of a trio of research papers released today examining social and economic costs of renters versus those living in their own home.

It suggested getting people into their own home could alleviate a number of issues, such as ill-health linked to poorer quality rentals and a lack of community engagement among tenants that could be a factor in criminal offending, and thus save the Government spending on health and corrections.

One study, carried out by Business Economic Research Ltd (Berl), estimated helping renters move into their own home could save millions in taxpayers dollars over time.
"Moving people along the housing continuum reduces the long-term liability to the Crown, improves household outcomes, builds communities and is morally and fiscally the right course to take."

A second piece of research, an analysis of international studies carried out by the Family Centre Social Policy Research Unit, supported Berl's findings.