National’s tax cuts for landlords gives nothing to renters.
The Child Poverty Action Group is accusing the National Party of adding embers to Aotearoa's housing crisis and child poverty problem by proposing to reintroduce carrots for landlords which will leave more renters worse off.
National has promised to introduce a series of tax cuts for landlords if it's elected, which will allow them to once again receive tax deductibility on interest and move the brightline back to two years giving landlords $2.3 billion extra in the pocket.
But CPAG argues the theory this wealth trickles down is out dated and disproven and will only see the gap between rich and poor widen.
Giving tax cuts to landlords will not trickle down and result in more affordable housing for those renting. CPAG spokesperson on rental housing Greg Waite says ‘tax cuts for landlords is not an effective or efficient way to deal with high rents’
Greg authored a recent rental housing research paper highlighting that redistribution through support payments will make an immediate difference to the most vulnerable. Six out of every seven households receiving a benefit in 2021 could not afford their rented homes and a basic standard of living.
These households need increases in support payments ($157 for singles, $240 for couples and $323 for couples with children respectively) to afford the basic standard of living recommended by the 2019 Welfare Expert Advisory Group.
National is giving them $4, $9 and $59 in tax cuts a fortnight respectively whilst giving a $2.3billion handout to property speculators.
Politicians hands-off approach to the housing market has resulted in Aotearoa New Zealand being the least affordable place to rent in the OECD contributing to unacceptable child poverty rates.
Its hard to argue that society is better off when the rich get richer and the poor get poorer but National is doing just that. Housing wealth is the largest driver of this inequity in Aotearoa.
Alan Johnson CPAG Convenor and Housing spokesperson says ‘To create more affordable rental homes, we will need an expanded public debate and a new commitment to state funding and partnerships with communities and iwi’
A few days ago in The Post, Louise Upston – Nationals spokesperson on Child Poverty told Max Rashbrook Nationals plan is twofold. First, reduce the costs poorer families face. “Deal with the cost-of-living crisis; that deals with inflation and housing costs.”
CPAG wonders if Louise Upston was part of the tax policy discussion. The proposed tax policy does little to reduce the costs for poorest families, infact quite the opposite with the main beneficiaries of this policy being property investors and landlords receiving a tax boost.
National’s tax policy is an election ploy that does nothing for families living in the worst poverty, including around 200,000 children and intensifies inequality, by giving the largest cuts to the wealthy.
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