Income Tax Planning Idea Tax Policy

The negative gearing myth exposed

If we stopped negative gearing on 1 July 2015 it would reduce the budget deficits across the next four years by $2.94 billion. Sounds amazing…

The budget deficits over the next four years are well over $80 billion combined!

Can we please accept that proposed changes to super by the Opposition ($1.2 billion a year or $4.8 over four years) or changes to multinational tax by the opposition ($3.2 billion over four years) or removing negative gearing get us NO WHERE NEAR a balanced budget.

All these proposals combined are less than a 15% solution… And these are the big three tax issues!

You cannot solve the budget deficits by taxing alone. And that just leaves cutting spending.

Can we please have a mature debate or do we just keep saying “it is only a revenue problem…”

By Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.

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