Tax on unrealised capital gains vs land tax
Riddle me this.
All of a sudden, everyone is excited about this Labor superannuation tax payable on unrealised capital gains. Given this has been out there for what, 1.5-2 years, welcome to the party.
Can someone explain to me what is the difference between a tax unrealised profit on superannuation and the land tax (to replace stamp duty) all these geniuses support?
Land tax is charged on an underliquid asset which appreciates and the tax goes up with the valuation determined by the capricious valuers employed by the state revenues offices.
Well then. What’s the difference because I can’t see one.
While not all of those screaming about this offensive superannation tax support the land tax idea, many are. Including many in the Illiberal party and the Teals.
Recall that Alegra Spender is in support of land tax but no superannuation tax. Me wonders why?
To paraphrase Mark Twain:
Suppose you were an idiot, and suppose you were a member of Parliament; but I repeat myself.
Many state politicians have expressed their desire for moving from stamp duty on property sales to an annual tax, paid on the estimated value of the property. This is how it works in the USA and it is the reason why many Americans say that even if you own your house debt-free, you never really do own it, because if you stop paying that tax, the government will take it from you and sell it. A bit like what can happen with non-payment of council rates here, but at least the councils try to pretend they provide a 'service' for it; whether you personally actually use it or not.
Is places like California, these annual taxes can add up to tens of thousands of dollars. No wonder our pollies are salivating at the prospect of having it here.
Unlike the proposed Labor tax on unrealised gains, where presumably there would be nothing to pay should one have unrealised loss instead the land/property tax is payable no matter whether your house went up or down in estimated value. You can be certain you'll get a bill every year.
Ultimately both are just another form of theft perpetuated by the politicians and public sector on the hapless taxpayers.
As is money printing - something the average Joe is not even aware of, yet loses thousands in purchasing power every year.
There is little difference in philosophy you are correct, but the super tax it is more insidious.
Land tax is state tax and we all know they are money grabbing broke ass bastards who even put taxes on jobs. They change the rates and method but it has been around forever. Super is taxed by the Feds. If Feds taxing unrealized gains is a success they will apply elsewhere to all assets not just super. This is a BRAND NEW TAX. Shares, property, crypto, valuables, business goodwill, intellectual property, your Gran's antique chesterfield you inherited......will all cop it and the sky is the limit. If value goes up you get a bill. Who does the market valuations? Currently superannuation law does not accept that state and local government land values are market values and superfunds must obtain independent valuations. This is how they get you..... states tax you on their values and Feds make you pay for valuation and tax you on that.....same asset two different values and no ability to go to court and argue that this situation is insane.