#cgtdiscount — Public Fediverse posts
Live and recent posts from across the Fediverse tagged #cgtdiscount, aggregated by home.social.
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I keep hearing the argument that if we tax business capital gains the same as income, people won't have the incentive to start businesses. I don't understand how an argument like this, which doesn't withstand a few moments of scrutiny, has been getting so much airtime. So let's give it that scrutiny.
For simplicity's sake, let's divide people who are considering starting a business into two camps: "be my own boss" and "get filthy rich".
The "be my own boss" entrepreneur is aiming to make a living through their business. Most of what they're looking for is a regular income, which is taxed as regular income tax (they also get fairly generous tax concessions as part of being a business owner). If they sell their business, they can make a very tidy profit and still be under CGT small business cap (potentially enough to never have to work again if well invested and they are willing to live within their means).
The "get filthy rich" entrepreneur is aiming to build a large business and have access to a massive amount of capital to do with what they will at the end of it (live large, have intergenerational wealth, make more money, give it all away). They are only affected if they sell their (share of their) business. When these people sell, they will pay significantly more tax without the discount than with it, but they will still end up significantly more than they could possibly accumulate as even a very well paid wage earner in that time.
The incentives for either type of entrepreneur don't change. There is no situation under the changed CGT arrangement where it made sense for someone to start a business (instead of taking a wage) before the budget changes take effect but not after. Yet people who should know better are continuing to spread this ridiculous talking point unchallenged.
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I keep hearing the argument that if we tax business capital gains the same as income, people won't have the incentive to start businesses. I don't understand how an argument like this, which doesn't withstand a few moments of scrutiny, has been getting so much airtime. So let's give it that scrutiny.
For simplicity's sake, let's divide people who are considering starting a business into two camps: "be my own boss" and "get filthy rich".
The "be my own boss" entrepreneur is aiming to make a living through their business. Most of what they're looking for is a regular income, which is taxed as regular income tax (they also get fairly generous tax concessions as part of being a business owner). If they sell their business, they can make a very tidy profit and still be under CGT small business cap (potentially enough to never have to work again if well invested and they are willing to live within their means).
The "get filthy rich" entrepreneur is aiming to build a large business and have access to a massive amount of capital to do with what they will at the end of it (live large, have intergenerational wealth, make more money, give it all away). They are only affected if they sell their (share of their) business. When these people sell, they will pay significantly more tax without the discount than with it, but they will still end up significantly more than they could possibly accumulate as even a very well paid wage earner in that time.
The incentives for either type of entrepreneur don't change. There is no situation under the changed CGT arrangement where it made sense for someone to start a business (instead of taking a wage) before the budget changes take effect but not after. Yet people who should know better are continuing to spread this ridiculous talking point unchallenged.
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I keep hearing the argument that if we tax business capital gains the same as income, people won't have the incentive to start businesses. I don't understand how an argument like this, which doesn't withstand a few moments of scrutiny, has been getting so much airtime. So let's give it that scrutiny.
For simplicity's sake, let's divide people who are considering starting a business into two camps: "be my own boss" and "get filthy rich".
The "be my own boss" entrepreneur is aiming to make a living through their business. Most of what they're looking for is a regular income, which is taxed as regular income tax (they also get fairly generous tax concessions as part of being a business owner). If they sell their business, they can make a very tidy profit and still be under CGT small business cap (potentially enough to never have to work again if well invested and they are willing to live within their means).
The "get filthy rich" entrepreneur is aiming to build a large business and have access to a massive amount of capital to do with what they will at the end of it (live large, have intergenerational wealth, make more money, give it all away). They are only affected if they sell their (share of their) business. When these people sell, they will pay significantly more tax without the discount than with it, but they will still end up significantly more than they could possibly accumulate as even a very well paid wage earner in that time.
The incentives for either type of entrepreneur don't change. There is no situation under the changed CGT arrangement where it made sense for someone to start a business (instead of taking a wage) before the budget changes take effect but not after. Yet people who should know better are continuing to spread this ridiculous talking point unchallenged.
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I keep hearing the argument that if we tax business capital gains the same as income, people won't have the incentive to start businesses. I don't understand how an argument like this, which doesn't withstand a few moments of scrutiny, has been getting so much airtime. So let's give it that scrutiny.
For simplicity's sake, let's divide people who are considering starting a business into two camps: "be my own boss" and "get filthy rich".
The "be my own boss" entrepreneur is aiming to make a living through their business. Most of what they're looking for is a regular income, which is taxed as regular income tax (they also get fairly generous tax concessions as part of being a business owner). If they sell their business, they can make a very tidy profit and still be under CGT small business cap (potentially enough to never have to work again if well invested and they are willing to live within their means).
The "get filthy rich" entrepreneur is aiming to build a large business and have access to a massive amount of capital to do with what they will at the end of it (live large, have intergenerational wealth, make more money, give it all away). They are only affected if they sell their (share of their) business. When these people sell, they will pay significantly more tax without the discount than with it, but they will still end up significantly more than they could possibly accumulate as even a very well paid wage earner in that time.
The incentives for either type of entrepreneur don't change. There is no situation under the changed CGT arrangement where it made sense for someone to start a business (instead of taking a wage) before the budget changes take effect but not after. Yet people who should know better are continuing to spread this ridiculous talking point unchallenged.
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Tech entrepreneurs warn removing CGT discount will be ‘disastrous’ for startups and small business
When Paul Bassat, the high-profile co-founder of job ad website Seek, warned on LinkedIn that the Albanese…
#NewsBeep #News #US #USA #UnitedStates #UnitedStatesOfAmerica #Entrepreneurship #budget #Business #capitalgainstax #CGT #cgtdiscount #employeesharescheme #Entrepreneur #paulbassat #sally-annwilliams #SmallBusiness #start-ups #startups #TaxBreaks #taxreform
https://www.newsbeep.com/us/636927/ -
Tech entrepreneurs warn removing CGT discount will be ‘disastrous’ for startups and small business
When Paul Bassat, the high-profile co-founder of job ad website Seek, warned on LinkedIn that the Albanese government’s…
#NewsBeep #News #Entrepreneurship #AU #Australia #budget #Business #capitalgainstax #CGT #CGTdiscount #employeesharescheme #entrepreneur #paulbassat #sally-annwilliams #SmallBusiness #Start-Ups #Startups #taxbreaks #taxreform
https://www.newsbeep.com/au/664141/ -
https://www.europesays.com/uk/952918/ Tech entrepreneurs warn removing CGT discount will be ‘disastrous’ for startups and small business #Budget #Business #CapitalGainsTax #CGT #CgtDiscount #EmployeeShareScheme #entrepreneur #Entrepreneurship #PaulBassat #SallyAnnWilliams #SmallBusiness #StartUps #startups #TaxBreaks #TaxReform #UK #UnitedKingdom
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https://www.europesays.com/ie/479201/ Tech entrepreneurs warn removing CGT discount will be ‘disastrous’ for startups and small business #Budget #Business #CapitalGainsTax #CGT #CgtDiscount #Éire #EmployeeShareScheme #entrepreneur #Entrepreneurship #IE #Ireland #PaulBassat #SallyAnnWilliams #SmallBusiness #StartUps #Startups #TaxBreaks #TaxReform
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Calls to Scrap Capital Gains Tax Discount Intensify Amidst Parliamentary Review
Australia's Senate is reviewing the capital gains tax discount. Find out who wants it changed and why it matters for inequality and housing.
#CGTDiscount, #TaxReformAustralia, #SenateReview, #EconomicEquality, #AustralianPolitics
https://newsletter.tf/australia-senate-reviews-capital-gains-tax-discount/
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Calls to Scrap Capital Gains Tax Discount Intensify Amidst Parliamentary Review
Australia's Senate is reviewing the capital gains tax discount. Find out who wants it changed and why it matters for inequality and housing.
#CGTDiscount, #TaxReformAustralia, #SenateReview, #EconomicEquality, #AustralianPolitics
https://newsletter.tf/australia-senate-reviews-capital-gains-tax-discount/
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A 50% discount on capital gains tax in Australia is being reviewed by the Senate. This could change how people are taxed on profits from selling assets.
#CGTDiscount, #TaxReformAustralia, #SenateReview, #EconomicEquality, #AustralianPolitics
https://newsletter.tf/australia-senate-reviews-capital-gains-tax-discount/
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A 50% discount on capital gains tax in Australia is being reviewed by the Senate. This could change how people are taxed on profits from selling assets.
#CGTDiscount, #TaxReformAustralia, #SenateReview, #EconomicEquality, #AustralianPolitics
https://newsletter.tf/australia-senate-reviews-capital-gains-tax-discount/
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Parliamentary Budget Office drops the truth bomb: 59% of the 50% CGT discount bonanza goes to the richest 1% (earning >$362k).
The system is rigged—tax breaks for millionaires while housing becomes a fantasy for the rest of us. Scrap this inequality engine.#CGTDiscount, #HousingCrisis, #Auspol #BuildSocialHousing #NegativeGearing
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Parliamentary Budget Office drops the truth bomb: 59% of the 50% CGT discount bonanza goes to the richest 1% (earning >$362k).
The system is rigged—tax breaks for millionaires while housing becomes a fantasy for the rest of us. Scrap this inequality engine.#CGTDiscount, #HousingCrisis, #Auspol #BuildSocialHousing #NegativeGearing
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Parliamentary Budget Office drops the truth bomb: 59% of the 50% CGT discount bonanza goes to the richest 1% (earning >$362k).
The system is rigged—tax breaks for millionaires while housing becomes a fantasy for the rest of us. Scrap this inequality engine.#CGTDiscount, #HousingCrisis, #Auspol #BuildSocialHousing #NegativeGearing
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Parliamentary Budget Office drops the truth bomb: 59% of the 50% CGT discount bonanza goes to the richest 1% (earning >$362k).
The system is rigged—tax breaks for millionaires while housing becomes a fantasy for the rest of us. Scrap this inequality engine.#CGTDiscount, #HousingCrisis, #Auspol #BuildSocialHousing #NegativeGearing
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Former RBA governor Bernie Fraser calls for capital gains tax discount to be scrapped
A former Reserve Bank governor has told a parliamentary hearing the capital gains tax discount should be scrapped…
#NewsBeep #News #Economy #AU #Australia #berniefraser #Business #capitalgainstax #CGT #CGTdiscount #inequality #OECD #propertyprices #robertbreunig #taxandtransferpolicyinstitute #taxreform
https://www.newsbeep.com/au/500430/ -
Higher interest rates smashed landlord profits, but negative gearing means few sold up
Eddie Dilleen is a 33-year-old who claims to own 150 properties. His confidence in property investing cannot be…
#NewsBeep #News #Business #ATO #AU #Australia #AustralianTaxationOffice #capitalgainstax #CGT #CGTdiscount #EddieDilleen #Federalgovernment #negativegearing #RachelOngViforJ #RealEstate #revenue #SaulEslake #taxreform #TAXATION
https://www.newsbeep.com/au/53689/