Interest Rates and Capital gains Tax Too High

  1. 6,951 Posts.
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    No reason to raise interest rates , they are already about 2 percentage points above inflation .Therefore these 'real' interest rates do nothing good whatsoever .
    Increased productivity is what is necessary to cut inflation and Tax incentives changed to invest in Shares to compete with the major tax incentive to invest in residential owner occupier property.
    Capital Gains tax rates should be cut dramatically , preferrably abolished altogether,for Share Investment in Australian Quoted shares, and therfore make it easier for companies to raise money and create wealth for everyone . There should be no Tax penalty for Capital gains on short term dealings , this merely makes the allocation of capital less efficient. Money should be completely fluid and able to go to the best investment opportunity.
    Politicians tell us that Businesses create wealth and they should put our money where their moths are and Abolish Capital Gains Taxes and Leave interest rates alone especially taking into account the $US/AU$ rate.
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