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High country farming - Source: ONE News -
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A proposal for a land tax has farmers and others in the business community worried.
The proposal was among the Tax Working Group's recommendations to the government on Wednesday .
Federated Farmers spokesman Philip York says a land tax could cost farmers $525 million.
"I know tax reform supporters will argue reform will encourage enterprise, but can anyone tell me how taking $525 million off farm businesses will grow exports? That's the effect of a 0.5% land tax on an agricultural taxable land base of $105 billion."
Farmers were asset rich but income poor and farming profits were shared across the economy, he says, and argued that local council rates were having a big enough impact.
Business NZ chief executive Phil O'Reilly says a land tax would be an anti-competitive cost on land-based businesses.
The government says it will carefully consider the report before putting together a tax package.
What do you think about the proposed tax changes? Have your say on our messageboard below.
Add a Comment:
Post new commentmolynz said on 2010-02-27 @ 04:17 NZDT: Report abusive post
Any rise in GST will hurt lower income earners simply because most things will now cost more. I think there is a case for exempting lower income earners and retired people from paying any GST period.
Andrew Mackenna said on 2010-02-16 @ 23:21 NZDT: Report abusive post
Abolish GST. It remains as a significant politico-economic scandal from the Roger Douglas regime (1986); a consumption tax imposed by the founder of a consumption advocacy Party - ACT. Backed by the Business Roundtable, the Douglas project may have been to supplant PAYE with a rich-soft GST. His other 'reforms' transfered the tax 'surplus' to Treasury, cordoning revenue off from public spending. NZ has been caught between two ideologically converse tax systems ever since. - Andrew Mackenna, ChCh
Maureenl said on 2010-02-14 @ 18:36 NZDT: Report abusive post
so where are all the jobs coming from? I presume out of fresh air.I agree about the DPB been there done that.Don't agree on the job front. Not enough now world wide so what makes John Keys think he can pull jobs out of a hat.Teaching respect and Law enforcement would work better
sagekiwi said on 2010-02-14 @ 13:02 NZDT: Report abusive post
Increasing GST is going to adversely affect those on lower in comes, and benefit the better off, full stop. National has always had a policy of punishing the poor, and helping the wealthy.
Tayler said on 2010-01-22 @ 12:56 NZDT: Report abusive post
Imputed rental value of owner occupied housing (net of mortgage interest and some expenses) should be taxed as income. This was the case in the UK until the 1960's. It's explained on the internet - just Google it. No great mystery. The policymakers are undoubtedly quite aware of it but they choose to overlook it because it is politically very contentious. Clearly, failure to tax it amounts to a subsidy to owner occupiers effectively capitalised into higher house prices. Also it is inequitable that rent payers effectively do pay tax at income tax rates on the rental value of the property they occupy (they have to find a gross amount of income and pay tax on that before having a net amount of income with which to pay rent). Introduction, would broaden the tax base, remove a subsidy capitalised into higher house prices and remove a gross inequity.