Armstrong Economics Blog/The Hunt for Taxes Re-Posted Feb 28, 2023 by Martin Armstrong
COMMENT: Marty, you are 100% spot on about governments only ever being capable of lying and mismanaging money and raising taxes.
The Australian Labor party that ran on a mandate to not change superannuation are now proposing to change superannuation.
Their plan is the abolish tax benefits for accounts with balances above $3M, using the usual argument of targeting only the rich.
That is always the selling pitch isn’t it? Only the rich and of course the majority take the bait.
I have desperately tried to inform people that it is NEVER just the rich that re impacted. I have can not for the. life of me get people to understand that the so called rich, will be required to sell assets to meet tax commitments and have less money to buy assets into the future, and that, that in turn will impact asset prices and thus affect everyone. Rich and poor.
And then there is the obvious. Thresholds never remain where they begin and are always lowered.
Government is on the hunt for money in every country.
REPLY: That is the problem. Most people do not want to believe that the government only looks out for its own power. It is so critical to prohibit career politicians no matter which direction they lean. For in the end, they will always lean in their own favor.
Perhaps you might remind them of the “Luxury Tax” that the sales pitch was they were going to tax their Ferarries, Fur Coats, & their French Wines. I was there in Australia back then. Maybe I saw two Ferraries because they were already 100% taxed to import. Some perhaps wore a fur coat down in Melbin, and nobody ever served me French wine – its was always Australian. People cheered then too – get those evil rich people. Then they woke up and ALL electrical products were suddenly a luxury.
The bulk of all taxes is always from the common people simply because we outnumber the billionaires. There are less than 500 such people in the USA. Confiscate all their wealth and you will not balance the budget even for one year.