A question of intellectual dishonesty, economic illiteracy and empire protection by politicians and their hangers on currently surrounds the topic of a capital gains tax on investment housing.We all know why investment housing is so popular and does so well in this country. There are countless tax advantages that this form of investing has over every other investment class, not the least one being the lack of a tax on capital gains, so it is bleedingly obvious as to why every Tom Dick and Harriet has an investment property.
The lax of taxes helps make for a successful investment, any investment, a third form economics student will tell you that.
Stockmarket investing is taxed to the hilt, as is investing in your own business, as are your savings in a bank or in a retirement scheme.
We all know how badly these investment classes, and our economy have suffered as a result of high taxes, while at the same time investment property is favoured above all by having no State hand reaching into your pocket.
So you think I want to tax investment property to even out the score?
Hell no.
Here is something quite radical and perhaps a little outside the square. Why not drop taxes completely on all asset classes?
That way investors will have a true choice about which investment they might want to make based on its merits or otherwise and if they invest in a business directly or a business indirectly on the stockmarket or put money into a savings account, the money is more likely to go into something productive rather than an over priced investment house with phony tax advantages and it will lift the economy as a result.
Aint that what we need, especially right now?
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c Share Investor 2009
I would prefer CGT on everything, and much, much lower income taxes.
ReplyDeleteCJ, why not no CGT AND much lower income taxes. Those on the hill would end up collecting more taxes in the long run because of a booming economy.
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