Crush Liberalism

Australia getting the hang of this “capitalism” thingy

Check out the Aussies, will ya?  They’re getting the crazy idea that lowering taxes will create a financial incentive that will ultimately increase their revenues!  What’s next, an understanding of how supply and demand works?  From Oz:

Australia will reduce the amount of tax overseas investors pay on dividends from managed funds to 7.5 percent to encourage investments in real estate trusts.

The tax, currently 30 percent, will be cut to 22.5 percent in the year starting July 1; 15 percent the following year; and 7.5 percent the year after that, Treasurer Wayne Swan said in his first budget in Canberra today.

“These arrangements will make Australia’s withholding tax rate one of the most competitive in the world,” Swan said. “The arrangements will ensure Australian property trusts are well placed to attract foreign investment.”

Australian money managers oversee more than A$1.4 trillion ($1.3 trillion) in assets, and that is forecast to exceed A$2.5 trillion by 2015, Swan said. Foreign investors account for only 3 percent of fee income, he said.

We could do something like that here in America that will attract foreign investors by the boatloads.  It’s called the FairTax.

May 16, 2008 - Posted by crushliberalism | Australia, capitalism, Fair Tax