Speculation defeating productivity
Forthcoming elections have divided the USA, the UK and Australia over much the same issue: the big end of town versus people expressing concern at their isolation from the political process. The sins of Wall Street in capturing unearned incomes via inflated mortgages and mortgage-backed securities–and responsible for the global financial crisis–remain unaddressed everywhere.
The above charts show to where the Australian tax regime has been directing its favours.
Therefore, it seems appropriate before the election to ask messrs Turnbull and Shorten what they propose to do about reforming the tax bias to real estate speculation.
Labor’s proposed negative gearing and capital gains reforms are steps in the right direction.