The Forum > General Discussion > One must look at the big picture when changing legislation
One must look at the big picture when changing legislation
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At the moment there are, or should is say, were, two major policies that labor had announced, negative gearing and corporate profit shifting, that can only be addressed if they take all things into consideration, because as it stands, all their focus is on the negatives of these issues.
Take negative gearing. Sure, it does provide tax breaks for some, but on the bright side it also provides much needed affordable housing (older homes) and the interest that is charged by the banks attracts company tax. Not only does the interest attract tax, but the loan can continue in place for decades after the negative gearing aspect ceased and in fact, some properties make a profit, meaning more tax even with the loan in place. A double hit to the tax man. In fact, I have some of those myself.
The other is corporate tax crack down.
Now sure, in a perfect world we would all love to see the likes of the big A pay their 28% in tax, however, what must be considered is what they bring to the table.
How much tax do they generate, with GST, stamp duty on commercial buildings, leases, insurance policies. What about the PAYG taxes collected from their employees. Surely if you want to do the math you must include all revenue as well as all non revenues and/or deductions.
There are always more than one side to a story and we must look at all sides before passing legislation. Failing to do so may result in unaffordable 'own goals' and my god , our poillies kick enough of those already.