Won’t landlords and corporations just pass the costs of additional taxes on to tenants and consumers?

The amount that landlords can charge tenants is primarily determined by market dynamics, specifically demand for rental housing compared to availability. Capital gains and wealth taxes can help to discourage speculative, investment in unproductive residential properties and generate revenue to build affordable housing, all of which would bring down housing prices.

If demand significantly outstrips supply, rentals will become less affordable as we have seen over a number of years in Aotearoa. Under such conditions, landlords have the ability to raise rents regardless of their costs. At the same time, a capital gains tax will discourage speculation on the housing market, and a wealth tax will discourage the hoarding of unproductive assets, including residential investment properties. This would have a gradual cooling effect on house prices, which in turn would make rentals more affordable while also helping renters into their first homes. In addition, the extra revenue raised through wealth and capital gains tax can help us to increase the supply of affordable housing and the stock of public housing. This will also help to stabilise rents while making it easier for renters to buy their first homes.

Alongside all of this, we still need protections for renters to achieve fairness in our housing system and realise the right to decent housing for everyone. This includes through measures like strengthening the security of tenure for renters and ensuring rental properties meet quality standards.