Capitalism will change, because it must
Tax system will change, because it must
To continue as we are challenges capitalisms survival

Belly,
Cheers, your best post to-date !

Sorry we never realy got into this subject
We will however, we will in far worse times that are about to come, sad but true
The GFC screamed at us the system was flawed, it should have told us it was out of the hands of every day people
Our banks, here far away from the birthplace of the GFC have been uncovered as no more than robber barons
Yet as we march towards our lemming like cliff some think only in terms of their politics not humanity
If we can not get the only system we think works right?
We deserve the coming pain
regards indy

Just rap it up, this mornings swim in international media saw me watch a fox news broadcast about the American economy
Not a place truth gets much of a run but the fed reserve bloke was worth listening to
Too the SMH house prices, just how much has been lost by that fall
Seems some are paying more than their home is now worth, and are behind on payments
Cut in interest rates? power more lending?
Not a good idea remember America's problems with its housing market
And too consider what if, say in two years, interest rates rise by 2 percent
We will talk about this again

"If my kids end up with it then they should pay an inheritance tax but this tax should not be more than 5%"

Why should they?
If the money you spent on materials at Bunnings was the non-tax component that was left over after you paid tax on earnings;
Why should the government get another bite?

If they do get another bite, it means that the tax you paid on the earnings you used to spent on materials at Bunnings to build the boat was now taxed at a higher rate.

It's more or less the same thing.

Why?

Because the government has now taken a larger chunk of cash in relation to what you built with those materials, over and above the tax you already paid on earnings you used to purchase the materials.

If the governments collecting tax upon tax on a single item, that's not a fair system, its a ponzi scheme.

Lets start with something smaller.

You go to work, get paid your wages and pay the income tax component.
Then you go to JB Hifi and buy a TV.

Eventually you pass and your kids get the TV and the kids don't need it so they sell it. The government says we want CGT.

They already took a portion of your income as income tax.
That's what it took to earn your money and had nothing to do with the TV.

They took a portion of your spending on GST.
That was the price of spending your money on the TV.
TV tax.

And now they want to get you again?

[Cont.]
If someone else already paid their tax when they earned the money to buy WHATEVER item they did;
Why should the government create another tax in relation to that item purchased?
They are taxing the item twice, which is more or less the same as if you paid twice the normal tax rate when you earned the money.
Not only that they can collect tax on the same item numerous times whilst the consumer, all he gets is devaluation of assets from wear and tear.

Compound tax.

What if your kid sells the boat and it transfers ownership 10 times?

Tax to the power of 10.

Tax on tax on tax on tax on tax on tax on tax on tax on tax on tax

All for materials you purchased with money you had left over AFTER you paid your tax.

Is it a fair tax system or a pyramid scheme?

The value of the item went down in value with each transfer of ownership.
The total value of the tax collected into government coffers in relation to this boat increases with each transfer of sale.

Eventually the boat isn't worth anything;
But to the government it was a goldmine while it lasted.
It just kept on paying, like a poker machine.