I'll raise rents if capital gains tax is introduced - Mark Richardson

Mark Richardson has come out firing against the Tax Working Group's (TWG) proposed changes to the tax system and said he will raise rents in response to a capital gains tax (CGT).

On Thursday, the TWG recommended the Government should introduce a CGT, while also reducing some personal income taxes by increasing the bottom tax bracket.

The group's chair, Sir Michael Cullen, said some people could see an additional $15 per week in their wallets if the recommendations were implemented.

The AM Show Host Duncan Garner and news presenter Amanda Gillies said the $15 per week could mean a lot to people, even if it just helps with a few grocery items.

"It is better than taking something off them," said Garner.

But The AM Show's sport presenter said he will take that money away from those renting his properties to supplement any losses he makes from the tax changes.

"If they don't own something, what are they doing, they are renting. Well I will take that $15 a week back," Richardson said.

He estimated that the $15 a week could add up to $575 a year.

"I'm sorry that might make a small difference to those right down the bottom, that makes diddly-squat difference to the people who will be hurt by this tax, which is the middle class, who are trying desperately to get ahead, not to be a burden on the system when they retire."

The TWG's own workings estimate a CGT will result in small rent increases initially, which would eventually be offset by more people exiting the rental market as home ownership becomes more accessible.

The TWG estimates that if the Government implements its CGT recommendations, it could generate $8 billion over the first five years. The Government will come back with its thoughts on the recommendations and plan for the tax system in April.

Newshub.

Contact Newshub with your story tips:
news@newshub.co.nz