9 May 2016

Malcolm Turnbull still believes in the outdated trickle down theory that has been debunked by almost every economist.

Give more to the top end of town and it will trickle down through the economy so they say, well there may have been a time when some of this happened, now its a different world.
The theory was that if you helped the top end of town they'd invest and create jobs, not so anymore, it is more likely they'll invest overseas and hide their wealth in tax havens and its all above board don't you know.
The LNP policies just announced show us that they still cling to the ideas that belong to another century, money no longer lives in its country of origin, it can live anywhere in the world. The idea that increasing the wealth with generous tax incentives to wealthy Australians because will always invest in their home country is rubbish.
Australia’s inequality is above the OECD average and has been growing above average over time. Two processes are in play. One is the growing income disparity between the top and the rest of us. The increases in real wages and other income for example have gone disproportionately to those in the top ten percent of income earners, and even more so to those in the top 1%. 
Our tax system has also become less progressive. This is because of reductions in top marginal rates, legislated tax havens for the rich like superannuation tax concessions and capital gains tax discount and our focus on regressive consumption taxes. 
The revenue forgone from tax concessions such as superannuation and capital gains tax and the losses from negative gearing is about $40 billion a year. About $17 bn of that goes to the top ten percent.
When not investing overseas where do these people invest, agriculture, infrastructure, oh no, its in housing why, over generous tax treatment. Result over valued property that puts a wall between young people and housing.
Result more inequality, and so the merry-go-round continues because "conservatism" is really all about not changing the status quo and protecting their rump(the wealthy).

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