Craig Rennie of the CTU has continued his excellent work analysing National’s proposed tax cuts and has come up with a doozie. Landlords who own multiple properties will get huge tax cuts if National’s policy is put in place.
According to Rennie’s analysis:
2021 MBIE data shows 346 Landlords owned at least 200 properties each. If they have as much mortgage debt on average as the average landlord (it is in fact, probably higher), they would get an average tax cut of $1.3m each over 5 years. These 346 would get $464m over 5 years.
These landlords will not reduce rents. They will pocket this money and no doubt a few of them would buy more rental properties adding to house inflation.
And guess who will be paying for it? Yep the poor.
Again from Rennie:
At the same time National would help pay for this change by changing the indexation of main benefits to CPI rather than wages. This would save $2bn – almost identical to the cost of the landlord tax giveaway. This would cost thousands for each beneficiary across the same period.
National’s tax plan would enrich those with significant assets – while harming those with the least. National should scrap their unfair & unreliable tax plan which is balanced on the back of the most vulnerable. They shouldn’t pay the price for National’s thoughtlessness.
I previously acknowledged that I own a rental property and theoretically could benefit from any change. I went onto National’s website to try its tax calculator and I was surprised that it did not ask any questions about if I owned a rental property. Presumably they did not want this aspect of their policy to be publicised.
But yeah let’s cut the amount that the poor and disabled will receive so that mega landlords can get huge tax cuts.
How very National.
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