US: top rate of 35% starting at $315K

I need to jump in here and explain how useless this statistic is, as it is often quoted. Fact is US pays FAR more tax than Australia. California holds closer to 1/4 than 1/5 of the US population and has state tax capping at over 10%. NY is > 7% above 100k.
Good point and absolutely correct. The 35% top rate…[Read more]

dmichie, did you get sick of using your normal username?
ssab has an amazing writing style comparable to yours.
Not me. Promise.

Excellent post, dunno how I missed this gem.

Big surprises (3 sigma events) occur with surprising regularlity – my guess every 5 years. So last one was sept 11, before than asian market meltdown/LTCm, and before that interest rates in the early 90’s in double digits.
Some nice charts of a 3 sigma event in the UK real estate market…[Read more]

I’m interested in others views ie what percent chance do you think there is of standard domestic Australian mortgage interest rates exceeding 9%pa?

Bugger all. The consensus seems to be that the budget is mildly expansionary but nothing like what would be needed to push bank rates to 9%.

Mind you, there are other (non-budget) things that could…[Read more]

I don’t follow any of your links any more. They are always the same negative trash. I am sure I do disagree with it though.
Hmmm … who is it who has the closed mind again?

Do you have any criticisms of the budget, or is it all good?

This is interesting tid bit about where all the money is coming from:

A large part of the source of all this…[Read more]

I am very impressed with the Budget.
It wasn’t a bad effort, but the Libs have a once in a generation opportunity to actually fix a few things, now that they have control of the Senate and big pile of cash.

I hate to quote (because I know how it annoys you so) but this about sums it up:

It would have done us more good had we seen fundamental…[Read more]

If I was a “Yank”, would that be a problem for you?
Not at all.

Lets change the subject, maybe we can find something we agree on? What did you think of Cossie’s last budget? A big tick for abolishing the 12.5% super surcharge, but I wish he’d lowered the top marginal rate instead of moving the bracket up to $95K (2005) and $125K (2006)

Compare…[Read more]

I was trying to convey that regardless of all the doom and gloom stories everywhere (especially here from dmichie), some good stories can come out. When I am driving and come to road blocks, I look for detours. I guess that most ‘positive’ people (and I don’t mean people who are bullish) would be also looking for the detour amongst all the road…[Read more]

First, let me say that I love that you just keep this going and going. You keep bumping the ‘doom and gloom’ threads up to the top of the list and people keep reading them. Great!

dmichie, the reason I take issue with your comments is because they are not impartial
Sure I’d like to pay less for my next house but that’s about the extent of my…[Read more]

What do you think that little thing called the Free Trade Agreement is all about.
Don’t get me started on the FTA … trust me, it will never end.

I never said anything like high house prices are a good thing.
I assumed you thought I was being “negative” because I was happy about house prices falling. Surely that must mean your idea of “positive” is that house prices continue to climb. If not, please define what “negative” and “positive” mean, and I will try not to offend your…[Read more]

If the economy goes bad these same poor FHBs are going to be on the wrong end of the stick again
I agree entirely. The ideal scenario would be a fall in house prices with no recession. Unfortunately I can’t see it happening because so much of recent economic growth has come from the housing industry. We really should be aiming to create a more…[Read more]

To be as negative as you is just ludicrous!
Yet again you fail to understand that a fall in house prices is a positive thing for many Australians. It allows struggling FHBs into the market, and makes it much more affordable for existing home owners to trade up. Where on earth do you get this idea that ludicrously high house prices is a good…[Read more]

If you purchase a $500,000 house in a year that there is a 30% growth rate, and the next year there is ‘only’ 15% growth, then your house will potentially be worth $575,000 despite a DECREASE in the growth rate. Headlines will scream “Property growth down” while your house value is still going up!

Actually none of these ‘gloom and doom’ stories…[Read more]

Bugger, he’s just shifted the tax brackets again instead of lowering the top rate (as was rumoured). Oh well, this loose fiscal policy should pump plenty of money into the economy and guarantee another interest rate rise later this year.

dmichie, you will never see the bigger picture with your close minded views.
Hey, just because I haven’t swallowed the Anthony Robbins happy pill doesn’t mean I have close minded views. My views are different to yours, the world would be a very dull place if we all had the same opinions.

Non-deductibility of investment properties creates no…[Read more]

They are mainly negative.
They don’t call it the dismal science for nothing. Economists have predicted 14 of the last 3 recessions [biggrin]

When are they ever right.
Robert Shiller, Professor of Economics at Yale University, famously predicted the tech wreck in his book “Irrational Exuberance”. He’s just released a new edition of his book…[Read more]

dmichie, I certainly do NOT agree with that statement!!!
Surprise! surprise! but it seems AUSPROP and ANUBIS do.

Why should company tax be the same as personal tax?
Because it encourages high company owners to warehouse profits in the company rather than paying themselves. i.e. Accountants are employed to make personal income appear as company…[Read more]

I am confused with the last 4 posts, what r u guys focused on, can u give us a solution in stead of a problem
I think what we’re attempting to do is fix the Australian tax system. There’s a surprising consensus between the bulls and bears — we all agree that company, capital gains and personal income tax should be around 30%, and that rorts and…[Read more]

personal tax rates should be aligned with corp tax rates, CGT concessions are distorting the economy and should be abolished, the states need to be pulled into line and have stamp duty and other rubbish taxes removed.

I couldn’t agree more.

I think it would be fair to reduce the top marginal rate to 30% and scrap all neg gearing benefits.

All…[Read more]