Originally Posted by
Daytr
The point you appear to be missing is to tame inflation more quickly and more fairly.
The cost of high interest rates on the economy and those paying the interest is huge and is drawn out because it takes years for the full impact to roll through the fixed term mortgage book.
By having a floating top tax rate and yes up or down, the impact would be much quicker.
If the economy was sluggish and inflation was in check, yes the top tax rate would be lowered to encourage more spending etc.
The reason NZ has a fixation with property is as you say, because of the lack of a CGT. I'm not suggesting one without the other.
Productivity issues however are a little more complicated than just the deficincies of the tax system
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