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Australia's tax legislation is, according to urban legend, the longest piece of legislation in the world. One of our law professors reportedly has an entire room devoted to books of Australia's extensive tax law. Part of the story is that Australia has several tax Acts.

Best of all, 'if Australia keeps making new laws at the current rate, there will be 830 billion pages of tax legislation by the turn of the next century,' said Robin Speed from the Rule of Law Association in the Sydney Morning Herald. In 2006, 4100 pages were taken out of the tax legislation to 'improve readability'. What a relief!

Then there is the 10,000 rulings a year the Australian Taxation Office issues (based on the average between 2000-08). Each of them can have the same weight as an Australian High Court decision.

What does this mean for you? 'Australians pay at least 125 different taxes each year,' your Treasury says on its website. '...there could be as many as 160 different state taxes and 259 taxes nationally.' Then, on top of that, there are local government rates.

Our favourite taxes are the Wine Equalisation Tax (WET), which is 29% of wholesale sales. And the superannuation funds tax - yes, you pay taxes on money the government forces you to save in Australia.

But all this is simply not enough. And so the Mineral Resources Rent Tax is following in the footsteps of the existing Petroleum Resource Rent Tax. And the Carbon Tax is following in the footsteps of the failed European emissions trading scheme debacle.

Perhaps that law school professor will need a second room to house this ever-growing pile of legislation.

Why do you, as an investor, need to worry about this kind of politicking? Well, tax is theft. With the threat of violence thrown in for good measure. There is simply no way of getting around that basic truth, as uncomfortable as it might make you feel.

First, to the claim that taxes are a violent threat. If you don't pay taxes - and don't cooperate with the consequences of refusing to pay them - the police will happily lock you away. And if you refuse to be locked away, the police will use force to make sure you are.

But why is tax theft? Well, if you get together a group of friends and they democratically vote to take away your money, that's theft. But if a slightly larger group known as the Australian electorate and their representatives try it, it apparently isn't theft any longer.

Original post:
Australian Tax: Running Government at a Profit