What if your age was your tax rate?

I had a chat over coffee with a friend and we were discussing how the Economist was showing that ‘young home owners’ are a dying breed. It is also a fact that older people tend to have less debt and own more property, then we got to talking about how you could balance the scales.

My idea (which I don’t agree with, it was just to ‘throw it out there’) was that your tax rate should be your age. It could work on homes via imputed rents – very unlikely to see the light of day, but on investment property it would make a big difference and would mean that profits of the most profitably landlords would reduce over time as they age.

It might encourage them to sell or transfer property to younger generations (releasing CAT/CGT tax in the meantime), it could also all backfire, was just a thought and probably an ill thought out one at that.

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