How to replace rates system

In response to Alan Johnson’s letter (Oct 12), I am also concerned about the council’s ongoing rates increases, which are way above the rate of wage and inflation increases.

As more of us retire, we may end up being forced out of our homes due to rates hikes.

Rates are a cash cow for the city council, but not a true reflection of usage of resources. For instance, a house with five adults will use more water, sewerage and collect more refuse than a house with two occupants, even if the properties are equal in size.

Therefore, I would prefer that rates be abolished and replaced with a low secondary regional tax on income – say 2 to 4 per cent. This could apply to business income as well. The percentage of income should be determined by central government, not local councils. The amount generated then depends on employment and wages generated in a district, which means councils have to attract business and be business friendly in order to generate income. Also, they would have to live within budget as they will not be able to rely on an income they can manipulate and increase at whim.

This would be fairer on retirees whose homes would become more secure and affordable. It is also fairer as one is taxed according to means, not value of property and fixed assets.

And under this system water could be metered and separated from tax.

John Maasch

Avonhead