58 minutes ago
This option creates an economic distortion as it creates a “lock-in” effect. In other words, it creates an incentive for people to hold property for longer than two years to avoid the bright-line test.
For example, a person may avoid selling a property at the highest price, within two years to avoid the bright-line test. The person who is offering the highest price can presumably put the property to its most valuable use. This means that people may not undergo otherwise efficient transactions and put property to its most valuable use due to the bright-line test.The other daft and disappointing aspect of this shambles was the way the government handled it. Submissions went out for public input just before Christmas and closed on 26 January. This Christmas timeframe gave no ability for anyone to oppose it, or write a decent submission pointing out the deficiencies. The Minister simply described the Bill as "fair", bit he didn't say to whom it was fair.
The RLWT proposal in the bill, together with the new bright-line test and changes to collect better tax information about buyers and sellers of residential property will help to ensure that everyone pays their fair share of tax on gains from property sales,” says Mr McClay.
Former head of ZDF Bonn Dr. Wolfgang Herles:-
“We have the problem that – now I’m mainly talking about the public [state] media – we have a closeness to the government. Not only because commentary is mainly in line with the grand coalition (CSU, CDU, and SPD), with the spectrum of opinion, but also because we are completely taken in by the agenda laid down by the political class”.
Worse than the mainstream, government controlled and poll-tax funded media in Germany just agreeing with the ruling coalition, the stations actually took orders on what was and was not to be reported on. He said:
“…the topics about which are reported are laid down by the government.
“There are many topics that would be more important than what the government wants. But they, of course, want to deflect attention away from what doesn’t happen. Yet what doesn’t happen is often more important than what does happen – more important than gesture politics”.