The Suit says: I almost choked on my eggs Benedict when I read about the Rudd Government’s decision to raise the tax on luxury cars from 25 to 33 per cent.
The reasoning, by Treasurer Wayne Swan, is to slow demand on our insatiable appetite for fine quality, safe, low-polluting motor vehicles, to help ease inflation. This idea is a casserole of arse.
My reasoning for this attitude is that Mr Swan himself justified the tax by saying, according to The Australian, that an increase in tax on luxury cars was fair as people who bought them could afford it.
“We don’t think it is unreasonable for people who have done well in recent years from government decisions in terms of top-end tax cuts, to just pay a little more,” Mr Swan said of the tax which kicks on for new cars priced from $57,000. “We think it is only fair that people who can afford these cars make a small contribution in that savings effort.”
So, on one hand he’s saying the tax will slow demand on luxury cars while saying that the rich can afford the cars. Please explain where the slowing demand part of this folly comes in. All this is about is screwing people for a few more dollars of the money they earned by working hard and employing people.
In the end it will only add a couple of thousand dollars to a $100,000 car, which most of us will wear or compensate for by not including one of the many options such cars have – I for example really don’t need the under-car flame thrower to fight of carjackers and charity collectors at intersections.
The Hippy says:
When I heard about Treasurer Swan’s plans to increase the tax on prestige cars worth over $75,000 from 25% to 33%, my first thought was, What is he going to do with the money to be gained from this tax increase?
So far, there has been no indication on what he plans to do with the extra revenue. However, I have a suggestion or two.
First, since motor vehicles are one of the biggest pollutants in the world today, with the 8% increase Swan could start ploughing in more money for tree-planting, especially replacing those trees that have been cut down to build motorways and other road thoroughfares. You don’t need to be a scientist to know that trees are essential for our survival. We learnt that in primary school.
Of course, some rich people, like Malcolm Turnbull who is said to have a personal wealth of some $150 million, are going to cry and moan about having to pay a couple of thousand dollars extra if they want to buy a fancy schmancy car over $75,000.
My heart bleeds for them.
Although I suggested planting trees to make up for the thousands felled by the building of highways and roads, I also suggest the Federal Government to start working hand in hand with the state governments and build better modes of public transport, thereby reducing the need for so many private vehicles on the roads all at once. Ultimately this long-term infrastructure would benefit the environment rather than allowing more private vehicles on the road. If our public transport system was up to scratch and world class, more people would leave their cars at home and feel better for helping preserve Mother Nature.
Finally, rich people who buy ostentatious things like cars worth over $75,000 need to stop thinking that money and expensive toys will buy them happiness. It doesn’t. Where there is a spiritual void, rich people always try to fill in that void by making more money, buying more things, building bigger things. The things that make people happy are always the selfless acts, like actually giving away their money to help the poor and needy without expecting anything in return.
On a final note, I leave you with these two quotes, and I hope that the rich people moaning about their pollutant-ridden vehicles and empty lives take heed:
Only when the last tree is dead,
the last fish is caught,
and the last river is poisoned,
will they find they can’t eat money.
– Cree Indian saying
The pursuit of money is in some ways a very shallow thing and it won’t bring happiness unless your mind is prepared to use that money in ways that expand it and satisfy it. So, to me an interest in science and literature and the arts, is all part of just being a full human being, and of course you’ve got to make some money as well, but our education system it seems to me, should be producing fully rounded human beings who can say, ‘I’ve lead a really satisfying life. I’ve had all the tools I need to be able to lead a great life,’ rather than just, ‘I made some money.’
– Tim Flannery
Do you agree with The Hippy or The Suit? What’s your take on the luxury car tax increase?
Filed under: Australian Politics, Environment, Finance | Tagged: budget, climate change, inflation, luxury car tax, politics of envy, taxation | Leave a Comment »