Slack on tax

David Slack

My favourite tax expert is back. David Slack, an average broadcaster and activist, has taken the opportunity to tell all doubters that they should embrace the idea of a Capital Gains Tax. Yes. David Slack has spoken, and, as always, he knows best. quote.

For every good idea, for every decent change, there’ll always be someone saying: “yeah nah” and: “just keep things the way they are” and also: “get your hands off my stuff, you commies”.

So here comes Michael Cullen and his panel of experts to review our tax system and suggest ways to make the tax system work better, and they say, among other useful things: “capital gains taxes.” end quote.

I would like to point out here that three of those experts have written a minority report saying that they disagree with the idea of CGT. One of those experts is a former deputy commissioner of the IRD. quote.

According to Man Who Owns 80 Rental Properties, the overnight star of this week’s reportage, if you want to own your own home you need good money habits, rather than a different tax system.

Yes; and absolutely no; and for pity’s sake man what are you smoking? You can have all the good money habits in the world but greed and fear have carried our property prices miles ahead of what today’s pay rates might get you. end quote.

Greed and fear, David? So house prices have nothing to do with a rapidly rising population, a refusal on the part of local councils to expand the urban limits in the major cities, an unworkable RMA, impossible council regulations and massive consent costs? No, of course not. Greed alone has done it. quote.

Why on earth wouldn’t we try a tax to put an end to the mania by applying it to every last house? end quote.

David is advocating applying CGT to all houses, including the family home. What are you smoking, David? quote.

“Oh but people will leave the rental property market and there’ll be no houses to rent,” people say. If people will leave the rental market because they can’t get a capital gain, then again: excellent. Long live the plateau. Let the government buy those houses and rent them at affordable rates because the return they seek can be social, not commercial. end quote.

Oh yes. David Slack is a communist. Perhaps he should relocate to Venezuela. quote.

Calling “the right to get on the property ladder” a Kiwi dream is fatally misleading. It’s not a dream. It’s a slow-motion Ponzi scheme nightmare.

end quote.

I wonder if David owns his own house? I’ll bet he does. If so, then owning property is a ‘slow motion Ponzi scheme nightmare’… for everyone else. quote.

What if we were to move to a new model? Kids might like to live in apartments.

They might like high density with plenty of public transport so they don’t need to be stuck on a motorway burning fossil fuels and wrecking the planet. It’s calamitously wrong to tell them the way we do things now is the way to go.

Stuff end quote.

Kids might well like to live in apartments… while they are kids. Once they have children of their own, though, they will want a house with a back yard where their own children can play. That is not just the Kiwi dream. It is our way of life.

David ignores the effect CGT will have on our share markets and on businesses. Those kids won’t be able to afford to buy houses, because they won’t have jobs, as many entrepreneurs will decide against risking everything by starting a business, only to have the government take away a third of it when it is sold.

People like David Slack are dangerous. His blinkered view of the world from his own very comfortable and privileged position prove Orwell to be right once again. In Slack’s world, all animals are equal… but some, like Slack himself, are more equal than others.