Bob Edlin: Marama Davidson focuses on social inequality.....

Marama Davidson focuses on social inequality, but other factors come into NZ’s poor productivity performance

Green Party co-leader Marama Davidson has a somewhat simplistic view of productivity, as she demonstrated in Parliament yesterday.

At question time, she asked:

Alison Pavlovich: Yes, landlords gain from the repeal of interest deductibility rules....

......but it was a flawed law from the outset

The new coalition government has announced a suite of tax reforms, including reintroducing the ability for property investors to deduct the interest costs on their mortgages against their rental income.

Early criticism of the proposed changes has focused on its retrospective nature (it will be backdated to April 1, 2023), potential windfalls to landlords (at the expense of tenants), and the fiscal cost of the measure.