Higher taxes for the 'rich'

Discussion in 'Property Market Economics' started by Blueskies, 21st Jul, 2017.

Join Australia's most dynamic and respected property investment community
  1. Blueskies

    Blueskies Well-Known Member

    Joined:
    24th Aug, 2015
    Posts:
    1,769
    Location:
    Brisbane
    Cant help myself with news.com.au clickbait but geez the following article frustrated me:

    Labor leader says Australia’s economic inequality is becoming dangerous

    I am not a hard-line capitalist/conservative, I have many left leaning tendencies, I think taxes are a necessary evil, but the labor obsession with wealth redistribution really frustrates me.

    The following quote from Bill I found particularly annoying: "Inequality feeds the sense that the deck is stacked against ordinary people, that the fix is in and the deal is done. That it’s not what you know but who you know,”

    The attitude that because someone has more than you the system is broken is such a victim mentality. For me I look to people who are more successful as inspiration rather than evidence the world is unfair. Of course there are elements that are unfair, children born into wealth will have a much better chance of being wealthy themselves through contacts, opportunities, nepotism, whatever. Wealthy people have access to more structures to minimise tax than those with less, but in absolute terms their tax contributions will be far greater.

    If Bill wants to talk about inequality, can he explain why Unionised wage staff at my place of employment are entitled to 3% annual payrises regardless of performance, while those of us on salary need to demonstrate significant achievements even just to match this? Or why my reward for investing hundreds of thousands of dollars into multiple segments of our economy in order to build a nestegg for my retirement sees me taxed at higher and higher rates over my working life only to eventually be ineligible for the pension when I retire? Or why when I take a drive through Logan on a rare weekday off I see so many seemingly able bodied people having a pretty good time sauntering out of center link and up to the RSL to redistribute my tax dollars into the pokies/booze?

    To summarise my rant, In a nutshell, I believe in general the more well-off segments of our society contribute far more to our country in absolute terms, and should be seen as inspiration of what can be achieved in a free market democracy rather than a source of more revenue for government to inefficiently waste.
     
    lowIQ, Brady, Angel and 7 others like this.
  2. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    4,144
    Location:
    Inside your device
    He's spruiking to his base of voters; the vast majority of voters who are also workers, and/or folks on welfare.

    If you think about the entire workforce as a pyramid;

    the largest volume of workers are the lower paid and least financially educated group, and the smallest group are the rich and/or financially educated group at the top of the wealth pyramid..

    Sad to say; but in Australia; this largest group are also generally of the mindset that they themselves will never be rich, and also have a healthy resentment of those who are rich; and Bosses.

    They either are jealous of rich folks, or think that the only way those folks could become rich was through luck, or they were given a good hand up at some stage, and/or mean and stingy, and/or a crook.

    So; of course if there are any sort of tax cuts on offer; the Bull Shoit-ens of the Pollie world will highlight how the rich get too much of a fair go, and this will help them snare more votes from the less well-off...

    take from the rich, while giving less well-off folks more free money? Wins every time.

    Any time I hear a Pollie who spruiks this "Robin Hood" mentality - I run a a mile, because he is basically wanting to steal from the rich who have mostly worked bloody hard, done all the good things, and have earned their success - and then "redistribute" it back to the less well-off.

    I have two very good friends who are both very, very well off and run their own Companies now.... both started off in the lower income/biggest voter group (as did I)..

    The difference is; they (and I) have a totally different mindset towards their (previous life) Bosses - and never viewed the rich as someone who should be punished....and of course; they don't vote Labor.

    But this is all not new, or exclusive to Aus - the exact same rhetoric is being used right now by the Dems in the USA....tax the rich more, and/or they are getting too much of a good go if there are any tax cuts..
     
    Last edited: 21st Jul, 2017
    Angel, Toon, Pumpkin and 7 others like this.
  3. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    its a bit of victim mentality and tall poppy syndrome,

    if the rich get rich, tax them the same or slightly higher ,

    whether they won lottery or inherited it or worked their butt off for it good for them

    too many people in todays world believe they deserve what others have

    if you compare yourself to people above you (per se) its pointless, you could compare yourself to those below you,
    it will never end and you will never be happy,
     
    freyja likes this.

Do you need help with investment strategies, don’t want to buy the wrong stocks, or you just need a regular income stream? We provide the research to ensure your investment selections achieve the goals. This is the value of advice.