GLOBAL SUB-PRIME CRISIS

BANKILEAKS

Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook
 

facebook3           facebook2 

BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

Visitors

Articles View Hits
769537

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Denise Brailey

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

BFCSA: Australia's messy tax system needs bold, scary ideas

Posted by on in ROYAL COMMISSION URGENT
  • Font size: Larger Smaller
  • Hits: 1268
  • 0 Comments
  • Print

Australia's messy tax system needs bold, scary ideas

30 April 2016

Harold Mitchell

 

One in 10 taxpayers get the benefits of negative gearing, nine in 10 miss out.

http://www.smh.com.au/video/video-news/video-national-news/turnbulls-negative-gearing-claims-under-fire-20160426-4e2qp.html

 

I'm totally confused about the tax debate. Deep down I've always thought negative gearing was wrong because it has unintended consequences. It was established to create new housing stock for young people who were not ready to purchase but in the end it worked against them by pushing up house prices. In the 2003 Andrew Olle lecture I made the point that our children would not be able to afford homes as we could and that's now true.

It seems to me that cutting out negative gearing is a good idea. One in 10 taxpayers get the benefits, nine in 10 miss out. It's plainly being used by those who have plenty of cash left after meeting their weekly commitments. The more they have the more they negatively gear. Charlie looked up the figures that have been tracking disposable income in federal electorates since 2003. Surprise surprise. Top of the list is Kooyong where 77 per cent of adults say they have money left after commitments. Kooyong is held by Liberals' rising star Josh Frydenberg. The top nine electorates on the list are held by Liberals, including Curtin (Julie Bishop); Wentworth (Malcolm Turnbull); and Warringah (Tony Abbott). The average for these three electorates is 69 per cent.

At the other end of the scale are the Queensland electorates of Wide Bay and Wright (both held by Nationals) where the average is 35 per cent. Bill Shorten in Maribyrnong is Mr Average (51 per cent) as is Barnaby Joyce in New England (52 per cent).

And on top of that, research by an ANU poll just released said that 41 per cent of voters preferred reducing negative gearing if the government had to make changes to tax. The government wants negative gearing, and any critic soon cops it. I notice the Victorian Liberal Party president Michael Kroger turned on this week's Grattan report on the matter, sniffing that it was "intellectually lazy".

Chief economics writer for Fairfax Ross Gittins said of the Grattan report that we are "very fortunate to have an independent umpire". But it seems that politicians aren't interested in independent advice.

Especially when their policies are criticised by the likes of Chris Richardson, of Deloitte Access Economics, Ross Gittins and John Daley of Grattan Institute whose founding supporters include the Australian Government and BHP.

My good friend Tony Stewart from years ago in advertising land, has some sobering facts. Of Australia's 24 million people, 9 million don't work because they are either too old, too young or unemployed. Five million are on government-funded payrolls and while they pay tax, it leaves only 10 million workers to balance our books from commercially generated income.  And the problem is, we still don't raise enough money to meet our needs, let alone our expectations.

At the moment there are more than 100 taxes: sales tax, fringe benefits tax, payroll tax and so it goes.  Without them, the cost of goods and services would reduce dramatically.  The system is a mess.

Tony's got a scary solution that no one would be game to do but it's worth airing.  He wants a two-pronged attack to raise enough money and eliminate the pain and cost of getting it.

First, no one person should pay any income tax at all. This would mean no tax returns to complete and no costly bureaucratic resources to collect it. 

Secondly, we introduce a 30 per cent GST to eliminate the deficit and create simple, cheap and stress-free income generation. Yes that's right, 30 per cent.

You only pay tax when you spend. Individuals and companies pay 30 per cent on everything they buy. A big GST would be fairer for everyone because many goods and services will be cheaper as they don't have more than 100 hidden taxes built into them.

The big-spending rich become bigger taxpayers and people with modest and low expenditure will pay less with the boosted tax revenue able to increase the pension and other essential benefits.

We need to be considering some new, big and bold ideas. Fiddling at the edges isn't going to do it. Roll on budget Tuesday. Let's hope all those people under pressure get some help and that the comfortably well-off are the ones who help them. "I think not," says Louise.

 

 Watch the video......Malcolm Turnbull in a muddle...

http://www.smh.com.au/video/video-news/video-national-news/turnbulls-negative-gearing-claims-under-fire-20160426-4e2qp.html

 

Last modified on
Rate this blog entry:

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Monday, 18 January 2021