Federated Farmers are unsurprisingly upset at the prospect of a land tax:
Federated Farmers’ Rangitikei-Manawatu president Gordon McKellar said a land-based tax would be “a pretty dumb idea”.
The projected profit for a typical 220 hectare Manawatu beef or sheep farm would be about $21,000 for the next financial year but a land tax on the same property could be as much as $24,000 if buildings were included.
If buildings were included, though, we’d be talking about a property tax rather than a land tax. The rationale is to tax something which we don’t need to worry about discouraging: you can’t make more land.
As I’ve said before, I would be very much in favour of replacing current taxes with land taxes, for both moral and economic reasons. Public choice concerns, as they often do, make things more complicated.