Forum Archive Index - February 2002

[Derek <dkw@paradise.net.nz>]

Surely this can't really happen ?

If so then does this mean that if the NZ dollar fell 
that the Govt would have to refund tax to every
homeowner in NZ since the value of their
homes have dropped ?

To answer my own question - No because the wealth
will be measured in NZ dollars. 

Is this fair ?

The scenario is one sided - wealth held overseas
would be taxed on a falling NZ dollar, but there
would be no compensation for the simultaneous 
falling of wealth held in NZ.

Also if landlords have to pay tax on the rising value
of their flats, then rents will rise, and in effect
the tenants will be paying the tax, not the landlord.
Is this the intent of such a tax?

Will farmers be selling off bits of their farms
to pay for the tax resulting from increases
in land value ? (This would have bankrupted
many Southland farmers had this been the case
in the last 2 years) And meanwhile, would it be
fair to exempt farmers while taxing other individuals
who choose to invest elsewhere?

Lastly, who could be bothered investing in risky companies
like A2, BLT, WDT, ITC etc etc, when there is a risk
of a big tax bill one year, then not being
able to pay it when the investment falls the next?

This would kill off much innovation in NZ.

Regards,
Derek












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