A value capture tax has merit

Stuff reports:

National leader Simon Bridges says there is no difference between his views on a land value capture tax and the views of his MPs.

Bridges on Sunday said it was “pleasing” the Government are looking at a land value capture tax, despite his finance and housing  spokeswoman criticising it.

Finance Minister Grant Robertson signalled the Government is interested in such a tax, which would fund infrastructure by taxing the people who benefit the most from it. This involves a special tax being levied on property owners deemed to have benefited from new infrastructure: for example, a row of shops, the value of which increased thanks to a new rail link.

I think there is merit in looking at this as a way to fund infrastructure. It is effectively a form of user pays (which the right should support) saying those who receive the most benefit from the infrastructure should fund it, rather than taxing all ratepayers and/or taxpayers.

So a bit of a lesson for National MPs also not to criticise something just because Labour says they are looking at it, and it is called a tax. Sure 95% of the time it will be bad, but in this case it does have merit.

Of course if those who live nearby new infrastructure will be levied more to pay for it, then you need to make sure they are consulted on whether it is wanted.