Whilst I agree with most of that I strongly disagree regarding the environment. We simply must get better at it and I don’t cop this “what we do will make virtuallly zero difference”
Surely something is better than nothing
2 Likes
Profit is irrelevant when taxing cash flow.
Incorrect.
First of all, multinational companies shift ‘profits’ offshore and into tax havens to avoid paying tax. To the tune of $16 billion every year. Taxing cash flow prevents that.
Secondly, tax is still collected even when local companies declare a loss, so profit is irrelevant. If 1/3 of large companies avoid paying tax because they aren’t declaring a profit, that is a substantial amount of money lost. As I stated earlier, a conservative estimate is an additional $25-40 billion per year in tax revenue with a CFT as opposed to the current system that taxes profits.
Please tell me what the cash flow is using your hypothetical model. Hint (it isn’t $10).
Edit: Oh, and to reiterate (yet again) a pertinent point I made earlier. The real beauty of a CFT is that it encourages businesses to pad the cash flow from investing activities section of their cash flow statement. In other words, they invest money in new equipment, buildings, technology, etc - to create a negative cash flow to reduce/avoid paying the tax on cash flow from operations. This is a strong incentive for investment.
2 Likes
Okay, it’s not $10. So you tell me what it is.
It’s time to introduce a pen is tax.
Depends on how it is levied.
In Werewolf’s case, it would be huge if it referred to being a dikkhead
Clearly there are fairly simple ways to overcome the transfer pricing ( offshoring of profits) issue.
The trouble is, it might be a disincentive for overseas companies to set up in Australia and thus employ Australians. Clearly as we already have overseas owned entities set up in Australia under existing arrangements to be fair, these arrangements would have to be grandfathered rather than changed abruptly.
Its a reform the Coalition needs to implement. If you want it within the next 3 years, write to Josh Frydenberg. Or wait until the next election if you don’t really care.
There’s no need to design the tax reforms, just apply pressure to your current government to ensure Microsoft, Google and Apple pay tax.
They need it, believe me, they need to deliver a surplus.
In that case there will need to be strong controls around what counts as “investment”. For example, M$oft Australia may decide to “invest” all its positive cashflow into whatever offshore venture would best benefit the overall corporation’s interests.
Isn’t a “death tax” effectively a form of double or even triple taxation of the same original (presumably taxed) income that was used to build said estate? Basically, for most families, you’re effectively imposing a capital gains tax on the family home ? And re-taxing super ? Does that then suggest the repayments on the home could be tax deductible ? Does it not reduce property ownership over the long term to an effective lease with a practical sunset clause?
I’m not sure I can be a supporter of the principle, as appealing as it is to deprive the Reinhardt’s of multi billions. There needs to have been an effective way to get a fair tax paid on the original accumulation of those billions instead. I also suspect that the Reinhardt’s will instead just inherit a corporate business share rather than personal wealth and structure up to avoid an inheritance tax anyway.
Just in my uneducated opinion.
2 Likes
Bill Shorten has nominated for the mid season draft, would be a great replacement for Joey , he too is always flying for the ball when its 30 meters away , or staging for frees
1 Like
The estate tax is perhaps the most Australian tax you could have. Its whole intent is to prevent the formation of a capitalist aristocracy and reinforces the values of this supposed egalitarian meritocracy.
At what dollar figure did the proposed tax even start?
If its anything like the one in the states ie. upwards of $5mill, then it would affect virtually no one.
4 Likes
gee sorry didn’t realised only lefties , just like too thank you guys for saving us dumb ■■■ right footers from ourselves .
Four days on, I’m still feeling pretty sh!!tty about things. My mood has shifted from initial shock to anger to a kind of amazed despair -
Shock that the most inept, dysfunctional, nasty, irresponsible and corrupt government I can recall weren’t turfed out in a landslide.
Anger that the economy, environment, NDIS, ABC, CSIRO etc. will continue to be hollowed out and run down because ideology.
Anger that the new blueprint for future electoral success is relentless negativity and lies.
Anger that people were sold a vision of unattainable aspiration by our aristocracy (‘Hi, I’m rich. Vote to make me richer because…er… you wish you could be rich too?’).
Despair at the gullibility, ignorance and greed of so many people that they would fall for this tripe.
We have had our Trump / Brexit moment. An own goal in the 90th minute. A self-inflicted wound by those who can least afford it. The people have spoken, and it still makes no sense.
Sucked in badly Orstraya.
7 Likes
And add to that more good news;
I’m ashamed fellow Aussies voted for these LNP farkers.
The country can sink into the Pacific ocean for all I care.
The only question left really is, … Canada, … or New Zealand?? 
Still want to abolish the states?
Amsterdam. Prob my fav city. Great ambience and short travel to anywhere in Europe.
1 Like
Yep. And without one, watch wealth inequality explode in Australia over the next 20 years.
1 Like
The Pacific will rise up and cover some quite large areas of the coastal property on which many have their holiday houses., I dont suppose you have a holiday house in Rosebud or Rye ?
que?