The finance industry itself is a necessary evil, the circumstance where they have become government cronies is a problem of government influence, not of the industry itself. I separated myself from the super industry and want to retain my money, it's the one portion of my savings that has less of it stolen than the rest. The government already has a huge slice of the pie. 15% of our super is the thin end of the wedge. Nonrecourse and others' posts well document the compliance costs, before you even look at the consumption taxes and stamp duty skimming the cream off the top of every enterprise.
So are you suggesting self-funded retirees are only economically independent because they paid less tax?
I can't speak for Big A.D but I really don't think that is what he is saying. mmm....shiney - I think that is a very disingenuous response.
My figures are partially supported with this study that states 65% of all income tax is paid by 25%. But it is more complex than just looking at income tax payed by individuals. Small business traditionally has created the lions share of wealth but it is shrinking due to big government, big business and union anti-competitive actions. http://cis.org.au/images/stories/policy-monographs/pm-63.pdf 80% of the Australian population retire on the government pension. I think that is a disgraceful statistic. Kind Regards non recourse
Actually that was what I was getting at: it's not the only way those retirees have the means to support themselves, but the tax breaks sure help. It's important to recognise that people in that situation have still been relying on the government for a free pass on some of the money they've earned not getting taxed. They've simply been relying on government and the rest of society to help them in a different way than if they just got a pension payment every fortnight. Everyone pays a little bit more tax at their marginal rate now so that some people can get a lower rate, invest the extra and have the value of their fund grow faster. And like I said, doing it that way isn't necessarily a bad idea at all, but if the benefits of that lower rate are going to some people more than others and especially to people who don't need the benefit then everyone else should be asking why they're carry the extra load.
Big AD you're saying everyone deserves something from everyone else. I don't rely on everyone's taxes being used on me, with my hand out. Having lower tax is quite the opposite to asking for something from the rest of society.
No, I'm not saying everyone deserves things from others, I'm saying that there is a need to support people in their old age. The superannuation guarantee hasn't been around long enough for the funds to have enough cash in them to support everyone who is about to retire. Starting that savings regime twenty-odd years ago was certainly a good start but it simply isn't going to be enough to get people through the whole of their retirement and that means the taxpayer is going to have to make up the difference. Since that financial burden is going to be there anyway, inequity is concessional tax rates on super now firstly increases the total burden because it gives assistance to people who don't need it and secondly, it brings some of that future burden forward so the inequity is "smoothed out" over a longer period which disguises how bad the effect is. Now, and in years to come, there is going to be a huge demand for the limited financial resources needed to keep a very large number of old people alive and in reasonable comfort. There are going be a lot of hard decisions to make and a lot of tough results to live with. Giving assistance - whether it's tax breaks on super or aged pension payments - to people who don't need assistance shouldn't be one of the harder decisions.
Hmm ok then my apologies to mmm...shiney. I won't agree that all self funded retirees are able to do so thanks to tax breaks. Some do for sure but it is a stretch to suggest they all do. I think your point is valid re. the unfairness of super concessions. I really fail to see how income in one entity should be taxed differently to income in another entity.
