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I hate the Tax Man

  1. munch

    3,567 posts.
    Does anyone else think they get very poor value for their tax dollar?

    A point on double taxation. I believe this not allowed in the constitution. First we pay income tax, then out of our "after tax" salary we have to pay the GST on ALL purchases. Did I mention the 50% tax on Petrol? That's right 50%!!!

    Double taxation and capital gains tax: First we have to ignore fluctuations in the stock markets. Basically stocks go up due to profits reinvested in the company and are priced according to their future earnings potential. If a company makes $100 before tax profit then it pays $30 tax. Now assume this equates to a 70cps earnings and the stock is $10. The stock then increases to 10.70 (assume future earnings capacity hasn't changed) and you have your self a 70c profit (assuming the company doesn't pay a dividend). But your a trader and you sell your shares for a 70c profit. Then you pay 35c tax and you end up with 35c for yourself. OUCH. You have just been taken to the cleaners by the tax man. From the original $1 profit the shareholder only gets 35c.LOL.

    How can the tax man hide this? Well they say that stocks don't reflect earnings and that stocks are volatile. Well yes they are but in the end of the day shareholders are being double taxed. A way to avoid this is for companies to pay fully franked dividends (then you only pay 50c tax instead of 65c). But still thats half YOUR money.

    If I was to tell you that in the middle ages people used to be taxed 50c in the dollar i.e. one sheep for the King and one sheep for the farmer you would have told me that it's unfair and that the King is a Tyrant. At the end of the day our effective tax rate is over 60%, yep SIXTY PERCENT. They disguse this as PAYG tax and hidden taxes in fuel, GST, Super etc etc etc etc etc.

    What do we get for it?

    We are getting JAMMED by the tax man.

    How can we protest? Everyone just quit their jobs and demand we pay one flat 30% tax on earnings with NO deductions what so ever. The governement will have to sack a lot of public employees but in the long runs its for the good of the country.

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