RT @JoshBBornstein: 65 year study confirms my research: Tax cuts don't lead to economic growth. Ping @Nick_Xenophon , @BCAcomau https://t.…
19/08/2017 9:13 PM
RT @attn: .@Schwarzenegger has a blunt message for Nazis. https://t.co/HAbnejahtl
18/08/2017 9:38 PM
RT @PositiveMoneyUK: Make Monetary Policy Fair: It's time to explore alternatives to 'conventional' QE. https://t.co/m6CFVojm7w #QEforPeopl…
18/08/2017 9:35 PM
@deirdrekent To be expected when income is taxed and capital gain not...
16/08/2017 9:22 PM
@bernardchickey @YourHomeLoanNZ Add ring fencing loses / deal to negative gearing and we might see some balance develop in the economy.
16/08/2017 7:36 PM
@bernardchickey Or take the job and do the right thing anyway - the RBNZ is "independent" after all...
16/08/2017 7:34 PM
@bernardchickey Not take the job because you would know you would be on a hiding to nothing. The link between earn… https://t.co/nxPRuAaT6t
16/08/2017 7:31 PM
RT @theyearofelan: Sure, the cancer was aggressive. But the chemotherapy was also very aggressive. There was aggression on both sides
16/08/2017 7:27 PM
@bernardchickey DTI+LVR+OCR all needed for financial stability & inflation.RBNZ can then push back on dumb policy f… https://t.co/CqXISZUHGq
16/08/2017 7:27 PM
@SelwynPellett Farming capital gains makes it hard to pay current expenses hence the need to externalise costs. Th… https://t.co/J1yevZAHft
14/08/2017 5:46 PM
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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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