Thursday 13 January 2011

Crowding out the government!?

I post this mostly for amusement, but it raises serious questions.

Queensland, and Brisbane (wher eI came from) has been hit by a massive flood - so large that even the BBC news lead with it.

Now there are appeals for people to contribute charity to help rebuild.

Fair enough, but are private contributions really good? Consider, that these are Tax Deductable.

This is therefore the private sector crowding out the public section by reducing federal tax income and increasing the Queensland income. It simply can not be efficient to do this, the charity is fine but making it tax deducable is inappropriate in this case as it will warp rebuilding priorities.

I expect to be a popular man in canberra?