leftwaddian tax talkfest

[sprintcyclist]

so what did the spazzos come up with, over a year after the dumped henry $30M hidden paper ..........


maybe tax the rich more, but on the other hand ..........

.....
Australia's tax system is riddled with loopholes that encouraged a culture of tax avoidance among the affluent, a tax forum has heard.

A prominent economist today accused both sides of the political divide of being more concerned about votes than dealing with the nation's biggest tax concession - negative gearing.

Businessman Mark Carnegie also warned the second and final day of the federal government forum in Canberra that Australia could find itself in the same financial position as the US and parts of Europe unless the the country's wealthiest people paid an extra 15 per cent in tax.

Advertisement: Story continues below "Unless those people are willing to stand up and say 'we will shoulder some of societal responsibility' we will be facing the sort of nightmare that Europe and the US has at the moment," the investor and corporate adviser said.

Grattan Institute economist Saul Eslake said the tax system was "riddled" with loopholes, not least the $4.5 billion paid out each year to affluent investors through negative gearing.

"There are now 1.7 million of them and they vote, which is why that subject is off the agenda for both major political parties," he told the forum.

"There is no country in the world that allows negative gearing as generously as the Australian tax system does."

Mr Eslake said 92 per cent of investors in rental property purchased established properties so it did nothing to increase the supply of housing or keep rents down.

Professor Julian Disney, the director of the Social Justice Project at the University of NSW, said negative gearing not only resulted in a loss to the tax system, it supported a culture of tax avoidance.

"Negative gearing, trusts, excessive salary sacrifice, FTB [fringe benefits tax] on cars, those things have brought tax avoidance techniques to the heart of Australia, and I think we need to wind them back" he said.

But Eddie Kutner, the the executive chairman of property developer Central Equity Ltd, defended negative gearing, as it allowed many Australians to invest in property.

"Were it not for negative gearing, many investors could not or would not afford to invest in property," he said.

"You would find that developments would not proceed, shortages would be increased, be aggravated and so rents would be increased."

Another focal point was tax concessions around superannuation, which ACTU assistant secretary Tim Lyons said only benefited top income earners.

"Around 40 per cent of the tax breaks on superannuation go to the top five per cent of earners, which is deeply inequitable," he said.

But Financial Planning Association of Australia CEO Mark Rantall cautioned against making changes to superannuation as people planned for their retirement.

"We have to be careful not to shift the goalposts too may times because the low-hanging fruit seems to be always superannuation," he said.

Superannuation Minister Bill Shorten said the government had a balancing act in making the tax concessions for superannuation "equitable and sustainable".

"We have to be mindful of the constant tinkering with the tax treatment of superannuation undermines the confidence in the system," he said.

Australian Chamber of Commerce and Industry director of economics Greg Evans reminded the forum that changes to personal taxes also affect some 1.7 million small businesses because they were not incorporated.

"Policy makers do not necessarily appreciate the strong effect that lower tax rates can have on the decision-making of these small business operators," he said.

Mr Evans said while the ACCI welcomed a proposed reduction in the company tax rate, there was a need for more alignment between the top marginal personal tax rate with the company tax rate.

"Too often income tax cuts amount to little more than the handing back of what has been appropriated by governments over time," he said.
......

basically nothing

[Neferti]

Sprint, I tend to agree with you, however I don't want to read a massive c&p post and at the end you just say ... quote "basically nothing". Do you want other righties agreeing with you or not?

Let's at least kiss cheeks (MWAHHA) and say "gidday" ......

[sprintcyclist]

gidday.

the henry tax review was dumped.
Why ever did they do another one now ?

[freediver]

Sprint what do you think of the increase in tax free threshold?

[mantra]

It hasn't happened yet. They're only talking about it. I thought Rudd had implemented an increase - but that didn't eventuate.

[IQS.RLOW]

Sprint what do you think of the increase in tax free threshold?

You mean the first increase in marginal tax rates?

The claytons tax cut? The tax cut you have when your really having a tax increase?

[skippy]

Sprint what do you think of the increase in tax free threshold?

You mean the first increase in marginal tax rates?

The claytons tax cut? The tax cut you have when your really having a tax increase?

THE Gillard government has committed to lifting the tax-free threshold to at least $21,000 in a bid to improve work incentives, Wayne Swan announced today.

The Treasurer announced the plan at the conclusion of today's tax summit, while also pledging to eliminate the current low income tax offset.

The move would hand a tax cut to millions of Australians while removing hundreds of thousands of workers from the tax system.

The pledge follows the tripling of the tax-free threshold to $18,200 as part of the carbon tax compensation package from July next year.

“Our first priority in personal tax reform will be to increase the tax-free threshold further to at least $21,000, and remove the low income tax offset entirely,” Mr Swan said.

“What it would do is better reward work and it would mean more Australians would be in work.”

[sprintcyclist]

Sprint what do you think of the increase in tax free threshold?

Sounds a good idea to me.

[IQS.RLOW]

Sprint what do you think of the increase in tax free threshold?

You mean the first increase in marginal tax rates?

The claytons tax cut? The tax cut you have when your really having a tax increase?

What part of labor increasing the tax rates don't you get skip?

Do you think sticking your fingers in your ears going lalalalalala is an effective reponse?

[skippy]

Do you think sticking your fingers in your ears going lalalalalala is an effective reponse?

You're the expert at that, old chum.
So, why dont you want the gov to increase the tax free threshold? oh thats right you dont want battlers to be better off, typical Lib supporter.