Image above by Jim Fischer.

The Australian newspaper's Henry Ergas wrote an opinion piece yesterday arguing that lower income renters would pay the price if there were any changes to negative gearing in Australia.

He starts the piece with his goal, which is to destroy the statement made by Saul Eslake that negative gearing is simply a handout from workers to speculators:

Saul negative gearing provides a "large subsidy from people who are working and saving to people who are borrowing and speculating". Recurring every time property markets arise from their slumbers, this contention is not one to be tossed aside lightly: rather, it should be thrown with great force.

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