Stephen Franks is musing about the proposed property tax and its effect on the rental market/ housing availability. Which prompted this comment from me (I risk broadcasting the idea to deter National, not to encourage the statists);
I have also pondered this in a vague sort of way. A great deal of rent is currently paid for with the accommodation supplement ( $1 billion annually). If rents rise as a result of a property tax, under this government's approach of compensating the 'poor' for any rise in their living costs, the accommodation supplement will also have to go up. How much of the extra revenue raised will be offset by the extra expenditure?
The Left puts up two irreconcilable demands. As you put it "soak the rich", and subsidise the poor. But while the landlord has freedom of pricing, nothing has been achieved except more cash transfer. The same happens with employment. While on one hand the Left wants workers topped up by the state, they also rail against subsidising the employer. Hence a minimum wage is legislated.
So don't be surprised if the Left start talking about a maximum rent. If National go down this road they will have to contend with this demand, and as Mr Key has already fiercely asserted that the 'poor' will be compensated for any rise in GST, he will be in a very weak defensive position.
1 hour ago