Not a fan of CGT even in the Keating days. I don't know about you, but to me real inflation is far in excess of the official numbers. I just guage this on how much my modest basket of goods has risen over the last twelve months compared to the offical CPI rise. Also the CGT burden normal falls to the smaller resident investor, as people with money structure their affirs differently.
I know the rort smart people used of diverting income to capital pre 1985 (only by study, as my carrer started in the early 90's recession). I remember doing some work for some very smart bankers, who structured in such a way to earn massive incomes and still access Austudy and family allowances (legally). Therefore FBT was a good thing at the time.
From my prospective however, I think the tax act is too complicated and is a disincentive to business and easily manipulated (normally by extreely wealthy people who use much more clevier person'd than myself).
I have seen modelling of the 1% debits tax that replaces all taxes and like what I see (even though it takes work away from me).
Some argue that it's regressive, inefficient and inflationary. However I believe due to information technology developments it is efficient and cheap to collect, removes the compliance burden and lets business get on with the job of production. Properly designed (with other measures to remove defects) it will place more burden on the multi-national (who has been paying little or no tax)and reduce the burden on PAYG tax payers and small business.
Anyway, got to finish some things for the bank for the morning. It is hard to get small business finance at present and the cronicles you need to supply take time.
Cheers
I believe (my personal view) that productivity is needed
