networkn:itxtme:networkn:itxtme:Geektastic: I believe smart people who make money deserve to keep it and the fact that some people cannot do that is unfortunate but irrelevant.
Interesting thought. What about those who havent been educated on negative gearing, or dont have the ability to purchase property and avoid tax? There is no doubt in anyones mind that the rich get richer by investing in ways that avoid tax revenue, not really sure how you think thats fair?
And you inferring that smart people dont get to keep their money is bizarr; they do get to keep it with a CGT, they are just taxed on the gain...
Education is a choice. There are plenty of free ways to get educated on NG if that is your chosen poison.
I wouldn't say I am rich, but I won't get more "rich" using any method you have spoken of. I will get "richer" by continuing to educate myself, offer better service and or products than my competitor and working harder. It's how I got when I am now, and I started from very humble beginnings.
The people who you seem to be targeting, get more wealthy by using the tax code applied to the letter of the law, which was all set up a long time ago by people elected to do so. People who fall outside this get penalized.
Huh!? You wont get more rich if you buy a house make a capital gain of $45,000 and dont pay tax on it? NZ is one of a few OECD countries not using a CGT. Private debt is out of control, if the housing bubble bursts there is going to be a lot of hurt, for a lot of people. Housing investment is a false economy that doesnt promote employment, and adds to a multitude of reasons that housing prices are so inflated. Reform I say, reform!
If I buy a house and sell it and make $45K which I already did once, it will be for personal use and wouldn't be subject to CGT regardless.
I am not a property developer and property developers pay tax on profits.
IANATE / IANAL, but that is only if it is the house you live in, so have purchased it for personal use, or something like a bach or weekender. But if you are buying a second house for an investment you would need to pay CGT from my understanding.