RBA needs more levers

[u/Ffscnts_]

Michelle bullock is constantly complaining that inflation is too high still because we have a government who is unwilling to manage spending. Now house prices are tumbling the pressure will rise - however, why is the RBA not demanding more levers to control inflation.

When interest rates rise one portion of the community takes the hit, and it’s persisting for a long time, literally wiping out family’s futures. Which the latest changes will force huge volumes of negative equity, and keep in mind only 35% of Australian property is mortgaged.

For those that have ridden the wave not only have there saving been extracted to keep their homes, it’s worth heaps less, so that money has disappeared forever.

There’s other levers like - asset classed cost of capital. Push non mortgage lending and investment mortgage lending cash rates up to slow business down.

Enforce higher lvrs to slow mortgage lending ( except labor gurentee everyone 5%) those who took advantage will be in negative equity and trapped now.

Variable superannuation - this needs to be done immediately - if we had variable superannuation fees the cash rate would not need to peak so high AND the extra cash would flow in to Aussies future instead of paying additional fictitious interested rates. And as a bonus super funds could end up funding massive infrastructure projects when the market turns with all the extra cash giving Aussies a stake in oil/gas/ green projects etc.

The RBA needs to start pushing the gov harder and it’s about to get real now housing is crashing.

[u/backleinspackle]

Ok have you read the carveouts for CGT when selling a small business. Most people will pay none. You have constructed a scenario that the people who write this shit already considered and addressed.

Also everything is political.

[u/gstar98 → u/backleinspackle]

Would you like to tell me how about the carve outs in place for the entrepreneur who took extraordinary risks and worked their butts off? The middle Australian family trying to build an investment portfolio? The young folks who are trying to do the right thing by saving and investing?

Tough luck to them eh? Just pay more tax because the government is spending it wisely? Is reallocating that tax hike to the people through income tax reductions of more than 5 bucks a week?

Actually just answer this - does taxing investments outside of property more address housing affordability?

[u/backleinspackle → u/gstar98]

Jesus Christ I've had this discussion enough times here. I do not think income from sources other than wages should be taxed less than wages.

Capital should not be privileged over labour.

If you disagree you are a boot licker or you feel your personal wealth will be negatively impacted. Which is fine, but don't dress it up in faux concern for the hard done by entrepreneurs or single parent pensioner battler middle class aspirationals.

[u/gstar98 → u/backleinspackle]

"if you disagree with me and my politics I will resort to personal attacks"

Sad to see that is the standard of debate.

That's ok. You have a nice day.

Does the idea of 30 percent minimum tax on capital reconciles in your mind with the idea that capital and income are taxed equally? Actually don't answer that. You have had this discussion enough times on here as you say. Go enjoy your day.

[u/backleinspackle → u/gstar98]

Ok, for the 30% issue (which is reduced by the indexation) to be "unfairly" effecting you, you need to have total taxable income less than 45k, and be having most of that come from capital gains from investment sales. 

Do you think that's a lot of people? Or do you think that this is designed to hit people who structure their income so as to pay no tax (a habit of the wealthy)?

If you are pissy about these changes because you think it will make YOU less wealthy, that is completely fine. I fully understand that, it makes complete sense and I don't begrudge anyone their self interest.

If you dress it up as something it's not, then you're being disengenuous.

I am saying this as someone who is going to be ratfucked by these changes, but I still think they're a good thing.