annual land tax coming to NSW

MMT has entered the chat.

The federal government gets the income tax and can print money if it needs it because it is the currency issuer. It doesn't need the tax to pay for things. According to MMT tax (particularly income tax) puts a brake on inflation (in essentially the same way interest rates do - less disposable income) rather than being needed to pay for things. The fed government is (arguably) responsible for controlling inflation.

State government (and council) cannot print money so they have to tax, duty, rate, and fine etc us to get revenue that they don't have to beg the feds for. SO if the state needs more revenue, e.g. to pay the overinflated salary of a disgraced and corrupt former MP, you better believe they'll come looking for it from their sources of revenue. So, having a "we reckon your land is worth $X" is much better for them than letting the market decide. Who is the land holder going to complain to? Another government employee, that's who.

/r/AusFinance Thread Parent Link - abc.net.au