Quote Originally Posted by fungus pudding View Post
For a start, I am not rich; and I think you'll find an annual equity tax would be unacceptable to most NZers and a complete disincentive. People would go to all sorts of lengths to avoid it - even more than they did with death duties.
People will always try to minimise tax, no matter the type. If an asset tax was associated with the individual assets, I am not sure if they could be avoided as easily as incomes accruing to individuals.

I think you are right about an asset tax being unpopular...there are still a great number of Owner occupiers who would shudder at the though of their investments in their homes being subject to an asset tax (in addition to rates?) However just because it would be popular, does not make it any more socialist than other revenue raising measures...

Investments in one's own home (as opposed to investments in businesses and companies) have always had a privileged position in NZ's revenue raising system. So obviously there is a strong feeling held by many of entitlement that this privilege continue. However as home ownership is increasingly unattainable for many, it could be time to review the tax system to ensure NZ's capital is being taxed fairly, and is being deployed efficiently and effectively.