Is Private Sector Unemployment 30% ?, page-5

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    Has anyone conducted an research on if a reduction of federal taxes would lead to an increase in state taxes.

    My theory is that if the Federal govt were to illuminate federal capital gains taxes on real estate there would be two gains. There would be an increase in the sale and turnover of land and hoyse property which in turn will earn extra stamp duty in Victoria which is about 6% on ourchases and extra supply would follow.

    There would be many people who currently fear selling property because of the high tax liability to the ATO and keep property they no longer want or need till death maybe in 30 years time. Getting rid of the CGT would have the benefit of owners selling assets they might no later nger want in certain locations and therefore causing an income event for the state government. They could then spend or buy another property at another location paying another 6% stamp duty.

    The more the turnover by buyers and sellers the more the states would win budget revenues. Some properties might turnover several times a year earning 12 or 18% with eah property and much more than the ATO would collect at and on large sale in an estate if the Will instructions so indicate. Many time properties don't get sold at all as occurred with state death duties such was the fear of the death tax.

    All comments welcomed.
    Last edited by Gillysrooms: 12/02/18
 
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