Thursday, October 01, 2009
It's time to properly tax super, and the 50% discount for capital gains looks silly as well - Henry
Actually he thinks everything about the way we tax savings is silly.
Here's the key graph from the talk Ken Henry delivered today in Adelaide:
Super contributions are negatively taxed, big time. Rental properties and shares are also negatively taxed big-time, but only if they are funded by debt.
Make sense?
Meanwhile savings parked in bank accounts are taxed massively - at way above the saver's marginal tax rate.
Make sense?
Hold on.
This speech throws the lot into the mix.