The group said changing NZ's tax-base could lead to lowering both income and company 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 reports The Manawatu Standard. "Basically that profit is all they've got to pay their wages. "Farmers are already paying a land tax anyway. It's called rates." These sentiments were echoed by Federated Farmers' regional vice president Robert Ervine: "More tax is more tax. It's another bill you're going to have to pay." A land tax may force farmers to be more business conscious when buying land, he said. Massey University real estate analysis unit director Professor Bob Hargreaves agreed farmers would resist such a tax. He doubted any capital gains tax would be on the political agenda after Prime Minister John Key recently ruled out such an option. "Sometimes, taxes have perverse effects, though." There would be strong support for any measures closing loopholes in the tax system, he said.
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