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APR 10

Stop Farming Capital Gains - they are mostly a tax free illusion.




More on the theme of fiscal policy driven warped behaviour, take a look at this link from Cameron Bagrie at the ANZ:


“New Zealanders need to accept that the economic model of the past 20 years, which is borrow and spend-style growth, is an unsustainable model. The rural sector needs to accept … you’re not going to see the big speculative asset price booms. The value of your asset needs to be determined by yield and cashflow.”


The full article is here:

http://www.agridata.co.nz/blog/2010/04/06/focus-on-productivity-not-capital-gains/#more-3094

 

It might also be worth looking a my presentation slides 20 to 24 are most in this respect, they are here:

http://www.fabians.org.nz/images/stories/RES-BC-JW-As.pdf

 

All up we have been stuffed by the fiscal incentives to chase capital gains, not yield and cashflows.


As this unwinds it will hurt – and the policy response is what?
 


tags: anz, cameron bagrie, capital gains, cashflow, tax free
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