Dealing to housing

One possibility to solve the housing problem is an optional tax (Editorial, November 28). Above a certain income, a tax cuts in, but instead of paying it to the IRD, the tax can be put into buying shares in new investments of taxpayers’ choosing.

Obviously, the financial sector has to create the mechanism for carrying this out, but if it refuses, the Government can do it. The structure could be similar to KiwiSaver, but companies could also participate through special stock issues. As an example, for housing, the tax would buy a share in a new house, and when that is sold, the taxpayer receives their proportional share, tax-free.

Because the system needs turnover, more effort would go into affordable houses. A good investment can get reasonable capital gains and shares can be retained for dividends if suitable.

The purpose is to get the private sector to choose new investments that create that which was not there previously. It can