Lab Housing Policy and Negative Gearing, page-22

Nope that is just introducing more taxation unfairness. If you want to get rid of negative gearing then DON'T tax the earnings as a sum total of all your personal income. The tax man on the whole does not lose, nobody NG's forever as the investment eventually becomes positively geared and you pay more tax. Plus when the property is sold the tax man gets is big cut.