That's the key: sell something valuable, invest the proceeds in income producing assets and don't let the f***king politicians anywhere near the principal. If only we could do that with our mineral wealth...
I argue that if negative gearing (discussed elsewhere as a legitimate system of expense deductions for a business investment) were dropped, we would be worse off. Why? Less property changing hands, less stamp duty going to the States, one of the few means States have to raise their own funds. Without stamp duty the States would cry out with their hands out for more GST, and I argue that would hurt us more than negative gearing keeping 1st home buyers out of the market - myself included!
And I would not give a rats about jacking your rent up to cover the short fall from the loss of the non cash deductions
errol, Like the wise man said, NEVER rely on a 74 year old brain. :-( (no idea on 'incorporation') OC
She taught me not to suffer fools. I hope you're not stealing my tax money to pay for your pension or negative gearing discount.
komrade, given that you post a fair bit in working hours, I suspect that you are the one living off the government. Get back to me when you have paid taxes for 36 years.
Of all people you should know the difference between gearing and negative gearing. Negative gearing encourages people to take on otherwise losing investments because of the tax benefit. Also encourages lots of money to be invested in housing instead of productive parts of the economy.
"Negative gearing encourages people to take on otherwise losing investments because of the tax benefit. Also encourages lots of money to be invested in housing instead of productive parts of the economy." AGREE! We should all get out of the rental property mugs game, and let the rents fall where they may, and if the underachievers cannot pay, let them sleep in the park, in the rain! OC
I'd be counting on it Would look forward to buying property for decent yields once the rents had been jacked up and the masses had sold out of their so-called investments that were losing them money.
First time since 2007. Today I had cold calls from agents looking for properties to sell. (""it's a good time in the market!"")
"Assume" and "ass" - that sort of thing. If you've paid taxes for so long, then do me a favour and support yourself (and maybe a few others of your generation) before you dip your hands into my pockets with your various pensions and tax concessions. You all talk a big show, but your generation and the one after you ran us into debt AND want us to support you in your geriatric years on top of it. Then you all claim that the problem with young people is that "they have a sense of entitlement". What a farce. And you have the nerve to talk about the future fund as if that's some great achievement while Hockey just blew away our debt ceiling and Abbott is inking his plans for Paid Parental Leave. The delusion you live under, which makes me understand that while you may be old, you've spent none of those years obtaining any wisdom, is that you think there is a difference between the Labor Party and the Liberal Party in their material effect upon this nation. If Labor is socialist "because it's written in their charter", then it must stand to reason that North Korea is a democratic people's republic.
"There's never been a better time..." Reminds me of Tony Martin's advertising career... [youtube]http://www.youtube.com/watch?v=QXWE7bESWD4[/youtube]
"Objectives 2 The Australian Labor Party is a democratic socialist party and has the objective of the democratic socialisation of industry, production, distribution and exchange, to the extent necessary to eliminate exploitation and other anti-social features in these fields." Yet still they flog off the peoples assets!!! No such hypocritical claims from the Libs. ....and such an obnoxious juvenile such as you is now to be ignored. OC
74 year of youth.. You contribute so much as far as history goes here on SS but please remember you are never too old to learn. Incorporation is as bad as Communism IMO. You still have faith pushing that blue wheelbarrow, I have lost faith with my multi colour wheelbarrow and I think sometimes the wheel has fallen off. Regards Errol 43
I think there is a compelling argument for a broad based land tax as a replacement for stamp duty. Lowering the costs of transactions will maintain or even improve the flow of property changing hands and investments in infrastructure end up being financed by the higher land values which result from the greater amenity the infrastructure provides. e.g. if you build a railway line, the land around the new stations becomes more valuable and attracts more tax. Right now, there's no great incentive for state governments to build infrastructure because the current system treats that as a cost, whereas a land tax makes it more of an investment. It's worth remembering that we're one of only about three or four countries in the world that allow negative gearing and by most measures our property is overvalued.
The answer is easy. Reduce government spending. Don't do Conski or NDIS slash the rorting of the disability support payments, abolish the RBA, slash all tariffs, abolish all government monopolies, sell all government-owned businesses and property, remove all artificial labour market laws to get people back into productive work and cut all of the red and green tape you can see (a lot of which is unfortunately the purview of the states and local councils). The burden of the deadweight losses on the economy and all of the associated bureaucracy will stimulate productivity and far more sustainable wealth generation. Slash all income taxes and raise tax revenue via a national lottery. The debt will be paid off within a decade.
'The answer is easy. Reduce government spending. Don't do Conski or NDIS slash the rorting of the disability support payments, abolish the RBA, slash all tariffs, abolish all government monopolies, sell all government-owned businesses and property, remove all artificial labour market laws to get people back into productive work and cut all of the red and green tape you can see (a lot of which is unfortunately the purview of the states and local councils). The burden of the deadweight losses on the economy and all of the associated bureaucracy will stimulate productivity and far more sustainable wealth generation. Slash all income taxes and raise tax revenue via a national lottery." Agree with all that, but as they say in the classics, you've got BUCKLEYS! OC
And reduce the role of the defence forces back to being a "defence" force and stop invading foreign countries. And cease all activities with the UN.
