Albanese is getting ready to increase taxes other than those on superannuation. Super is his stalking horse, he's softening up the electorate and seeing how voters in NSW behave this month in the state poll. The NSW election is a referendum on Labor's federal Super policy. If ALP win in NSW he'll make further tax policy announcements, going back on the policies regarding capital gains tax and negative gearing that he took to last federal election.
The Guardian reported in a headline that the ALP isn’t planning to change capital gains policy with regards to the family home. BUT he will change the ALP policy with regard to a second or third property etc. It’s on the cards if the Guardian is saying this because the Guardian is a staunch leftwing paper that supports more redistribution.
Labor is getting ready to Venezuela the economy. Even a death tax won’t be off the table. I listened to a popular economic correspondent that the Australian Broadcasting Corporation (ABC) often brings on to comment on financial matters and he is clearly in favour of a “progressive” tax system. If this is the position of an economics expert who is a Millennial then changes to the way we tax people in addition to Super are inevitable. This isn’t some snoog from the local RSL with a middy of Tooheys New and a gambling addiction, this is someone who lives and breathes money and who is brought on-screen to talk about things that affect most people’s lives.
The problem is that 20 percent of households own more than one property, so changes to capital gains tax and negative gearing aren’t a minority issue. When you see ads on TV for landlord insurance you see Middle Australia and they’re not super-rich. They’re getting by wanting to improve their lives so that they have something to pass on to their kids. Meanwhile the ALP is supporting changes to aged care that strip money away from the very elderly who cannot and will not complain because they’re at the end of their lives. What the ABC expert says should happen is already happening.
There’s no question that taxation is necessary and that some things like healthcare should be funded by the government, but if you remove the incentive then you put a dampener on economic activity because people become more shy of risk. If you want people to put up their cash for a new venture then you have to let them reap the rewards otherwise everything will be government-owned and you end up the Soviet-style dysfunction.
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