The debate on negative gearing heats up

For those outside of Australia (or economically illiterate in Australia), negative gearing is a tax scheme whereby the Federal government pays people who speculate on property money, thereby making property prices more expensive and collecting less tax revenue. This is done under the guise of “encouraging investing”, even though there is no investment done at all since nothing new is produced at all, in particular no new properties are built as a result. Given the absurdity of this notion you would think it’d be the first thing any reasonable government would cut from the budget, but not when vested interests and corruption are in play.

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