Nau mai haere mai.

When the Green Party recently proposed a wealth tax to help end poverty, the reactions that it amounted to being an “envy tax” were as quick as they were predictable. No doubt we can expect more of this level of searing economic insight as the election draws nearer.

Yet the fact remains that New Zealand has a serious problem with entrenched poverty, an over-concentration of wealth at the top, and an economy hamstrung by under-investment in productive enterprise. The common denominator? Housing.

The Greens’ policy offers one possible remedy, but as Susan St John writes today, it also risks being bogged down in endless argument about how we define “wealth” and what might be included or excluded in the detail of administering such a tax. On the other hand, she argues, a straight-out tax on houses – not a capital gains tax – would be relatively simple, efficient and fair.

If that makes ordinary homeowners nervous, they needn’t be. With the right thresholds and exemptions, a house tax would not affect most people – but “it would start to give the right price signals to reduce the over-investment in luxury housing and real estate held for capital gain”.

In the meantime, hello to all our new subscribers – this newsletter has been growing steadily this year and we’re very grateful for your interest. There are also nine days left in our fundraising campaign, so there’s still time to support our public interest journalism here. Until next week, mā te wā.