Zerohedge- Australia’s Unrealized Gains Tax Will Be A Lesson In Economic Suicide
Taxing unrealized gains is equal parts outright f*cking mathematically insane and cut-and-dry authoritarian. And while I’m appalled by the policy itself, there’s a perverse part of me that’s almost glad it’s happening in Australia first—because the disastrous results will be on full display for the world to see.
What’s the selling point on this nonsense? I’m guessing envy.
I suppose, on the other hand, you could think of it as the government thinking you have potential. 😀
Pure politics of envy. And it will completely crush incentive to do ANYthing other than the bare minimum to survive … and lean on the government (your fellow citizens to do most of that for you). The notion of upward mobility just got crushed.
But the tax-collectors, and bean-counters will do quite well indeed.
The issue is our so called conservatives hardly mentioned it during the recent election campaign. It most certainly would have been a vote changer. The Uniparty in full view
Well…insanely dumb ideas like these are an easy sell for the kleptocrats because the idiots who keep voting for these twits are not smart enough to know better or don’t have a pot to piss in anyway.
I lost of count of how many happy Carney voters I ran into post election who are also home owners that had no idea these bastards are looking at tapping home equity. Morons.
The parasites will keep feeding until either the host or parasite is dead.
home equity tax.
l saw that coming way back. its been better part 3 years l made the not tooooo difficult decision based on that and some 5 other major reasons to sell the place. at the very least if Carnage doesnt drop the bomb before end of summer my timing in regads to real estate remains top notch.
but like you say, they blindly choose a kleptocracy.
but levying the tax before financial gain is *realized*.
that really is a new one for me.
Will there be an unrealized loss tax credit?
Surely you jest!
I was set to ask the same, before rejecting it in the mild chuckle of someone who’s seen this crap before.
I do want to mention though, if this catches someone’s eye in the Canadian gov’t, their knee-jerk response is going to be “we’ll learn from this and do it better” … “we’ll do this the Canadian way” lol
Which is real close to … “but that wasn’t real communism” .
Liberals are bloodsuckers and people who vote for them are brain dead idiots …
Mark Carnage
Your house price will double in ten years, so you can pay tax on its future value now.
The value of your house will stay the same in Cad$ adjusted for inflation. The value of the Cad$ adjusted for inflation will drop in half. Therefore, your house has doubled in value …. before these policies cause a housing crash of epic proportions.
“In my opinion, after this plays out, no serious policymaker with a shred of economic literacy will be able to look at the forthcoming outcomes and still argue that taxing unrealized gains is anything but a disastrously stupid idea.”
Like THAT would ever stop a politician.
Well after all, it’s their debased currency they let us play with. Our capital gains, they reason, is a result of their making money worthless and causing all the inflation in the first place. It’s just fine for them and their indexed pensions but for the surf….oh no.
There is numerous ways that are being brainstormed. Of course a hidden carbon tax increase is certain. In addition to the aforementioned equity tax there is a capital tax. What if you own secondary homes? To an extent, this has already happened in BC.How about a snow bird tax?As there is no control on spending, there is no limit on the ways they can tax you. Institute cbd currency, and AI tracking – well you should be able to figure it out. The upcoming finacial criss driven by the finacial mismanagement will “require ” it.
I once asked a NDP supporter how much they thought they would have to fork over to support “tax the rich.” They had substantially more means than me. Typically, they thought they would benefit. Don’t worry,the government is here to help us.
I’ve asked NDP and #Librano types, what is the maximum tax rate they’d support? What’s the maximum tax they’d apply to liquor, the maximum tax they’d apply to gasoline or electricity… not just the provincial or federal tax.
I’ve never gotten a straight answer. There’s always something new to tax, always.
Doen’t matter if Australia tries it first and it face plants. They will do it better here! It’s like “nObOdY tRiEd rEaL sOcIaLiSm”
Came to say something similar. The ideologues won’t give a crap, and it’ll be full steam ahead. They’re actually more likely to see it as proof of concept for their own destructive goals.
Oh crap. the Canadian liberal party will think (or already think) that this ‘unrealized capital tax ‘ is a great idea. Socialist commie morons them all.
Ya know, I’m starting to be less and less worried about such things. I was getting to the point of being almost apoplectic worrying about home equity taxes, unrealized gains taxation, carbon tax, emissions cap, pipelines, referendums, etc. etc. etc. ad infinitum ad nauseam
I am becoming increasingly confident that none of these will happen as I firmly believe that the nation of canaduh is on the verge of meltdown and fiscal collapse resulting in the rapid breakup of the “country”
My reasoning? The POTUS sees a weak, pathetic, poorly run country much as a takeover firm or vulture capitalist would see a company with great physical assets but poor management and employees. The application of minimal pressure at certain key point, trade being the obvious one, will precipitate a calamitous downward spiral. As I have often said before, my hope is that the US demands full and immediate access on Dairy meaning Quebec gets mad and splits. That may mean some reprieve
Secondly, the fiscal state of the benighted Dominion. The Greatest Economist Ever(TM) thought he could get away with no budget until Spring 2026. I am guessing that the ratings agencies and big banks told him he better have one. The downgrade is on its way anyways. The lack of a budget would create even great uncertainty and accelerate the coming downgrade.
When the budget does come, DJT aside, expect a massive deficit far larger than any in the past outside of covid. That, coupled with massive sub-sovereign debt, and poor prospects means downgrade. The spiral begins.
Nobody wants to invest in this “country” outside of Alberta and Saskatchewan. An unrealized gains tax would put the final nail in that coffin.
Australia is a lot different from canaduh. They do not have 90% of their population within 100 miles of the largest, most powerful economy in the World. It will, however, be amazing to see the massive capital flight that will be taking place in the days ahead. It will all be headed one place and it ain’t China.
100% Chris.
also,
“There’s no greater coward than money” … and no shortage of other less taxed regimes to invest in.
My understanding is that In the US. Capital gains have gone unrealised for several generations. They have not really explained why we need it in Australia, other then someone has eyed the 4.2 trillion that super is valued at and thought we could tax that, who cares we promised it would not be taxed a generation ago.
as soon as the topic comes up, its dont worry about it only the very rich will be affected.
Except the greens want to change it 2 mill from 3 and inflation will make that 3 mill much smaller.
as happened 20 years ago, suddenly land tax which was something the rich had to worry now applied to a average home in a good suburb.
sigh as long as they keep importing immigrants the immigrants will vote labour in. There is no real opposition atm as the past opposition exploded post election.
Capital gains are only taxed when the asset is sold. Long-term capital gains (assets held more than a year are taxed at a lower rate: 20%? I pay mostly long-term capital gains but seldom calculate this myself). It pains me to say this, but you might benefit from being under our tax laws.
The only good thing to come of out the recent Australian election is that another 3 years of looting the Treasury and facilitating a foreign invasion will be the end of Labor at the next election.
But only if , and its a big if, the opposition is reborn as a true conservative alternative and the protected class get a whiff of danger in the air (eg their super getting attacked).
Our protected class don’t have the same super. They have whats called a “Defined benefit Scheme”. In other words, whenever they screw our Super, it doesn’t affect them. Australia is no longer the nation of hard asses it was, it’s a cucked nation full of people who couldn’t roll over quick enough to get jabbed so they could go to the pub. In other words, we are screwed.
The issue is our so called conservatives hardly mentioned it during the recent election campaign. It most certainly would have been a vote changer. The Uniparty in full view