Morgan wants to tax home owners

Millionaire economist Gareth Morgan’s new political party has property speculators in its sights, with a plan to introduce a levy on home ownership.

The Opportunities Party (Top) says its policy - the first since its launch last month - will ensure Kiwis are taxed more fairly, with any increase in revenue offset by a reduction in income tax.

At a press conference outside John Key’s house in the Auckland yesterday, Morgan said the policy was squarely aimed at Key and other millionaires (himself included).

‘‘There’s only 20 per cent of people who won’t be better off and they will hate me. And that’s fine.’’

On its website, Top said the current tax system ‘‘favours owners of capital and unjustly burdens wage earners’’.

People who bought and lived in a house received the benefit of ‘‘free accommodation’’ without being taxed, while those who rented it out or put their cash in the bank had to pay tax on their income.

Instead, the party would put in place a ‘‘minimum rate of return’’ on housing and land. People who already declared that level of income would not be affected, while those who didn’t would have to pay more. The new system would be put in place gradually to ensure house prices remained stable.

Morgan said the policy would ‘‘make New Zealand fair again’’.

The party said the policy was ‘‘nothing like a capital gains tax’’. ‘‘This is an annual levy (like rates) and what it’s doing is making income tax fair.’’