Labour will make no changes to interest deductibility rules for residential landlords if elected, as party leader Chris Hipkins confirms he wouldn’t revisit the settings.
This is some rare common sense for Labour. They called it a tax break for landlords, when it was no such thing.
Labour changed the law the last time they were in government to target landlords and treat them different to every other business owner in NZ, by saying they could not deduct the costs of borrowing from their business income. It was entirely unprincipled.
All National did was restore the law so that all businesses are taxed the same – ie can deduct borrowing costs from taxable income.
Pleased that Labour have agreed this is the right thing to do, despite spending three years condemning it.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders
All National did was restore the law so that all businesses are taxed the same – ie can deduct borrowing costs from taxable income.
Pleased that Labour have agreed this is the right thing to do, despite spending three years condemning it.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders
1 comment:
Interesting to see this. The more you know!
Additional background from The Spinoff, more historically speaking: Personal attacks were cooked up in the prime minister’s office and elsewhere, drafted into nasty, drip-fed blog posts and sent out into the world through two National Party-aligned blogs: Whale Oil and Kiwiblog. An embarrassing number of journalists reprinted these attacks and came to use the bloggers, Cameron Slater and David Farrar, as regular sources for tip offs and news. The journalists were aware that the bloggers had close links to John Key and his government, and this further enhanced their status and influence.
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