I received the following as an email already on the 26th of May. I am a bit late in thinking about publishing it. But it might still interest some bloggers in Australia who are interested in Earthsharing & Prosper’s insights on budget, housing and the state of economics

I ask myself, why are capital gains ignored in the budget?

THE ENEWS OF PROSPER & EARTHSHARING AUSTRALIA
MAY 2014

The state of economics

Welcome to the second Evolving Economics enews, combining the Earthsharing and Prosper Australia news lists. This knowledge is important in an age of entitlements, where welfare is demonised and unearned incomes (a.k.a. capital gains) are ignored. Take a quick look at these budget costs:

Jobseekers – $10bn p.a
Family Tax Benefits – $19bn
National Disability Insurance – $17bn
Medicare – $20bn
Imputed rents (unrealised capital gains) – $484bn in residential real estate alone.

So why tax students, the poor and the productive when so much revenue potential exists in economic rents?

With much talk about the ‘1996 Howard Costello tough budget’, we are reminded of the change since. In 1996, First Home Owners borrowed just $95,000 on average. Today that has more than tripled to $303,000. Wages have only increased by $214%, compared to 319% in housing (read land) costs.

This federal budget will cost the poorest 20% of the population, the lowest quintile, $2.9 billion over four years. However the wealthiest 20%, those earning $88,000 or more, will pay just $1.78 billion – 40% less.

It is time the public spoke up on the record capital gains occurring in housing, mining and other natural monopolies. That is our specialty here on the Evolving Economics enews. We hope you find this information of use and can join us to maintain this knowledge base, continuing to push governments towards a refined economic system that encourages productive activity over speculative largess. See our recent press releases.