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Me pessamistic?

Nah... just plain boring contrarian, watching all the signals and fully aware of what the stats indicate.

If you cannot see the writing on the wall as an analyst then scratch a little harder. Look at the fundamentals... there is higher bankruptcy rate - there is an increase in unemployment in the mining industry - there is a dependency by WA on mining - oil prices - petrol prices are rising due to the cost of crude which will affect everything from agriculture through to transport ... inflationary trends which will impact on the interest rate.

And what about our present CGT legislation that only allows a capital profit to offset a capital loss. Mind you the poor 'bastards' that do mortgage everything with a gd idea and try and bring it to the world. When they loose everything (due to big business stiffling competition through monpolistic tendencies)including the shirt on their back. No future benefits ... still taxed on income and he/she will never own another house in his lifetime let alone be able to start up business again.

The Oz population are like leemings that do not learn from history and are intent on commiting the same mistakes year after year. Whether it be borrowing maximum amounts possible on marginal rates to buy the dream home or believe the politicians.

Look at the federal government labour years and cringe with the policies that were introduced, in basic reality *fabianism* policies that the left wing have written about for years. Cringe at the press and their absurd love affair with Hawke, Keating governments.

Then we have the *political correctness* inroduced by Keating (mind you I was embarrassed by the 'leader' insulting everyone's intelligence under the guise of parliament).

Then we have a liberal government that is hamstrung by minorities - first a Tasmanian senator that commands around 21,000 votes and now the Democrates. What do we get at the end of the day ... a stuffed GST package that has delivered more problems than Habibie's 'trenchers' in East Timor!

What is cooked chicken, what is this what is that ... you have to legislate food in a certain way or it does not make sense...

Sheesh why not give the exemptions another tug and control the waxing of apples and oranges as that is an additional cost to the raw material...

Our political system does not assist one 'iota' and after years of requesting a tax reform policy we have a GST that means effectively that if you are a small business earning under $50K you cannot register and as such cannot charge the GST. Mind you, you have to pay the GST on all purchases though - therefore you have to increase your charges by 10% to cover this cost.

Now take the services sector - any advice that you give apply a 10% GST. This means that costs are to rise by 10%. The immediate effect is an increase in costs to the end user by 10% in this industry.

Does this not fuel an already fragile inflationary system?

Remembering that previously sales tax applied to a limited number of goods anyway and manufacturers were exempt. Now no-one is exempt!

Then we have the wine industry - the biggest benefactors of any introduction of GST and one of our larger growing exports. What does the government do - introduce a tax on wines so that we now have a Wine Equalisation Tax (WET).... why because the breweries lobbied hard and have the funds to lobby.

The system stinks - you know it and I know it - yet if you have the money to lobby the respective governments then you can alter their mindset.

The Ralph report is now tabled and if you lend monies to a family company then you have to pay taxes on the withdrawals in repayment of the funds lent. They are to be deemed a dividend! Well doesn't this just take the cake for a total tax system in that you can deposit monies into a bank and withdraw them, but you cant deposit funds into a family company and withdraw them without paying taxes first...

Read the report and weep as I can see the further demise of small business. After the 1987 witch-hunt the entreprenuer was banished, now we have another nail in their coffin (offest by stupid tax perks for seed capital which applies to the larger companies only) - no more are we the lucky country...

Postscript ... After reading that you would think that I am against tax reform. Wrong I have been studying tax for a long time through UNSW (ATAX) and in my opinion I feel that the country has lost grip of what we are. A bunch of larrikins that do work hard and invent some wonderful inventions and have some brilliant ideas but due to lack of capital have sold off our ideas and lost interest in the needs of the local community and the world. This is more to do with the fact that we are a *small* country in a *big* world with *big* ideas and *small* minded parliaments intent on holding office not intent on helping the country!

We only have a population of 18 million against the US who have 260 million.... China has billions!
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