the biggest problem is public sector.. aka Government - big...

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elee

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06/01/20

15:23

Post #: 42247732
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Originally posted by mystikal: ↑

Tax System can only do so much to help the economy, the following below can be enacted to entice better behaviours like:
1. Encourage savings other than taking on debt on property
2. Encourage long term savings with short term incentives for lower tax erosion

Here are a few suggestions:
- Quarantine investment deductions/losses to investment income (i.e. cant negative gear but can carry loss for later years so still retain benefits)
- Excess Franking Credits should not be refundable but will have the ability to be carried forward to offset income of future years
- Make land tax non deductible but at the same time reduce land tax by fixing the margins
- Increase land tax surcharge
- Make FBT non deductible but at the same time reduce FBT to 40%
- Make FBT year end in August
- CGT Tax Free Allowance of $10,000 a year but at the same reduce CGT discount to 25%
- Decrease tax on concessional contributions to 0%
- Investment income (Dividends/Interest) Tax Free Allowance of $5,000 a year for income earners below $90,000
- Link Super Contributions to HECS i.e. you can opt to have your super compulsory payments can be used to pay down HECS first
- Reduce the corporate tax rate to 25%
- Increase incentives for foreign investment and business sectors for areas that are less population dense

The bigger problems we have are welfare, low innovation compared to other countries, reliance on a few sectors for our economy, outsourcing of sectors such as manufacturing and now other service sectors like accounting/IT.

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the biggest problem is public sector.. aka Government - big spenders, big eaters
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