Negative Gearing - The myth.

We have long been told by the our "two party" system of government, which ever is in power, how necessary negative gearing is to the economy. Well the truth is, it is not the case.

Negative gearing by property investors reduces personal income tax revenue every year and in 2010/11 was reported as a $13.2 billion loss to the tax office. At the time that Scott Morrison was Federal treasurer he cited tax data that showed that middle income groups such as " teachers, nurses and electricians" benefit in larger numbers from negative gearing but ignored the fact that it is of far greater benefit to high income earners and of course, the wealthy. He also failed to mention that Parliamentarians are among the greatest beneficiary's.

Can we consider that this is just one of those tax concessions that is nothing else but discriminatory to lower income earners and the homeless. One has to think that negative gearing is inflationary to property values and achieves nothing for rental accommodation. Contrary to what Mr. Keating claimed when in government. Once again we the voters have been conned or lied to by the political parties. A Parliament of Independent members, both Senate and Representative would address these and other tax issues that urgently require correction.

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