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.