Taxman targets property profits

any sort of tax that stifles productivity and getting ahead seems to be in favour. but aussies love the socialist ideal and the concept of tax the wealthy to help the poor – the recent outrage about tax cuts for anyone earnign more than $52k is testimony to that. As an article in todays West concludes: “We need to value our wealthy and our skilled. Without them, we’re just another failed socialist paradise.” And it really does sadden me everytime I hear yet another one of my colleagues tell me they are heading overseas for bigger $ and less tax.

Yes it is sad but the government taxes us soo much it is incredulous. I have already made my plans to move to New York City in 2006. Finish up my current projects and then move to a city that offers the same money, same rental (income % wise to Australia), but much lower taxes. And then save and convert my USD to Aussie dollars.

My plan is to live and work in the States and take advantage of the Australian medical system when I get ill (come back here for any major treatment), hopefully be able to apply for a government pension (look at structures for divesting assets and be able to comply with the Australian requirements – the joys of a wife who is a US citizen) and try to recoup some of the proposterous taxes I have paid over the last 10 years.

I am all for taxation and distribution of wealth from the fortunate to those less fortunate but over the last 10 years I have paid for a lot of children who I have not sired. Time to get some of that back.

Can i ask why?

It’s something i have never understood.
How many wealthy people do you know have become wealthy from being fortunate. Chances are they slugged their guts out or sacrificied early for later in life.

I personally think it’s abhorant to to tax one person more than the next.

Why do i support those who are fortunate contributing a fair share to taxation to assist those who are not. Well it is probably because I am a socialist at heart.

I am one of the few fortunate souls whose parents benefited from family benefits while I was growing up (which enabled my mother to stay at home and raise a family) because my father was earning a very very low wage. Austudy also allowed me to go to university and obtain a degree, gain knowledge and work hard in my chosen profession to become one of those fortunate ones. Happy for my funds to be used to help people like me in my same position.

Would this have been possible without government funding. Well that could be debated.

But am I happy for my taxes to assist those who are disabled and unable to work (you bet I am), am I happy for my taxes to go towards medicare so that someone in a horrific car accident who doesn’t have private health insurance can get the best care possible (anyday). Am I happy that my funds are squandered on superannuation pensions for politicians that are inequitable to the rest of the community (no – and im glad that they are addressing it – albeit slowly)

However I am oppossed the very high levels of taxation we have in Australia. I have no problem with a GST and a corresponding low tax rate. That way if you consume more then you pay more. I think excluding food, rent, etc from GST is the right thing to do. But other services should be taxed. If i decide to eat at Aqua every night then why shouldn’t I pay for that consumption to assist those who cannot do so. Mind you a GST, plus high tax rates, plus stamp duty, plus petrol levies, plus medicare levies, plus tobacco taxes, plus hotel bed taxes, well yes this is ridiculous.

Tax:

Here is the real story to lighten the Budget discussion! You’ve heard the cry in the last 5 or 6 days from across Australia: “It’s just a tax cut for the rich!”, and it is accepted as fact. But what does that really mean? The following explanation may help.

Suppose that every night, 10 men go out for dinner at La Porchetta’s. The bill for all 10 comes to $100. They decided to pay their bill the way we pay our taxes, and it went like this:

* The first four men (the poorest) paid nothing.

* The fifth paid $1.

* The sixth $3.

* The seventh $7.

* The eighth $12.

* The ninth $18.

* The tenth man (the richest) paid $59.

All 10 were quite happy with the arrangement, until one day, the owner said:

“Since you are all such good customers, I’m going to reduce the cost of your daily meal by $20.” So now dinner for the 10 only cost $80.

The group still wanted to pay their bill the way we pay our taxes. The first four men were unaffected. They would still eat for free. But how should the other six, the paying customers, divvy up the $20 windfall so that everyone would get his “fair share”?

They realised that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth and sixth men would each end up being paid to eat. The restaurateur suggested reducing each man’s

bill by roughly the same percentage, thus:

* The fifth man paid nothing (like the first four) instead of $1 (100% saving).

* The sixth paid $2 instead of $3 (33% saving).

* The seventh paid $5 instead of $7 (28% saving).

* The eighth paid $9 instead of $12 (25% saving).

* The ninth paid $14 instead of $18 (22% saving).

* The tenth paid $49 instead of $59 (16% saving).

Each of the six was better off, and the first four continued to eat for free, as now did the fifth – but outside the restaurant, the men began to compare their savings.

“I only got a dollar out of the $20,” declared the sixth man. He pointed to the tenth man “but he got $10!”

“That’s right,” exclaimed the fifth man. “I only saved a dollar too. It’s unfair that he got ten times more than me!”

“That’s true!” shouted the seventh man. “Why should he get $10 back when I got only $2? The wealthy get all the breaks!”

“Wait a minute,” yelled the first four men in unison. “We didn’t get anything at all. The system exploits the poor!” The nine men surrounded the tenth and beat him up.

The next night the tenth man didn’t show up for dinner. The nine sat down and ate without him, but when they came to pay the bill, they discovered that they didn’t have enough money between all of them to meet even half of the bill!

That, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore.

That about sums it up for me. Author Unknown.