Einstein, Eddington, and public understanding of Science

By John Barker A very long rave. I'm getting quite anxious about “things”. My…

If we seriously want to tackle climate change,…

By Keith Davis Let’s combine two facts and see where that takes us: Fact…

Day to Day Politics: 2014, the year of…

Tuesday 27 June 2017 The year was 2014. The year Tony Abbott winked. Scott…

Venezuela unearthed: uncovering the western media deception

By Christian Marx Once again mainstream media is lying and omitting key information…

Nice is all very nice, but it doesn’t…

It is all very well to be nice and good, but the…

A Pitchfork for Setka. A Soft Kitty for…

As the media chase CFMEU John Setka down the road with their…

How long must we endure this pompous, self-righteous,…

Nothing annoys me more than people who have enjoyed the benefits of…

The tactile experience of climate change

There can be no-one in this country by now, barring the unborn,…

«
»
Facebook

Fifteen reasons not to give multinational companies a tax cut

Fifteen reasons not to give multinational companies a tax cut

  1. The underlying cash balance for the 2016-17 financial year to 31 January 2017 was a deficit of $44,029 million. Net debt is $323,821 million; and Australian Government Securities on Issue is $483,080 million.
  2. The ATO’s latest corporate tax transparency report showed 36 per cent of large firms had zero tax payable in 2014-15. However, this is a slight improvement on the prior 2013-14 financial year, where it was nearly 38 per cent.  The entities covered by the report are public and foreign firms with an income of $100 million or more and companies privately owned by Australian residents with an income of $200 million-plus.
  3. Of those who do pay tax, almost a third of companies are paying an effective tax rate of about 10 per cent
  4. In Australia, analysis showed the GDP loss due to profit shifting by multinationals was 0.41 per cent, or in dollar terms, $US6.1 billion a year.
  5. The ATO has 71 audits under way in the large business area covering 59 multinational corporations. At least seven major multinational audits were expected to come to a head before June 30, four in e-commerce and three in the energy and resource industries.  The ATO expects liabilities to total more than $2 billion from these seven companies.
  6. Bureau of Statistics business indicators data for the December quarter show a massive 20.1 per cent surge in profits over the quarter, while wages fell 0.5 per cent. Since the Liberal government took power in September 2013, real wages have grown by a miserable 0.3%.
  7. Due to dividend imputation, almost all the benefit from the company tax cut would go to foreign shareholders as Australian shareholders would have to make up the cut with income tax.
  8. Treasury modelling finds that the level of employment in 20 or 30 years’ time will be just 0.1 per cent higher than otherwise.
  9. Treasury’s modelling finds that the cut in company tax would cause the level of real GNI to be only 0.6 per cent higher than otherwise “in the long term”. After 20 or 25 or 30 years, the level of real after-tax wages will be 0.4 per cent higher than otherwise.
  10. Employers have already benefited from the freeze of the superannuation guarantee at 9.5% rather than the legislated incremental increase to 12% by 2019.
  11. Employers will benefit from cuts to penalty rates.
  12. Businesses have already avoided tax through instant asset write-offs.
  13. The Accord traded away the right to negotiate wage increases in return for price restraint and an increase in the “social wage.” We now see those hard won agreements being whittled away.
  14. The bigger the gap between the company tax rate and the highest income tax rate, the greater the incentive to become a company.
  15. By value 71 per cent of foreign investment applications come from countries with company tax rates lower than Australia’s rate and by number a large 97 per cent come from countries with company tax rates lower than Australia’s rate.

 


10 comments

  1. townsvilleblog

    And to add insult to injury we discovered last week that only one section of corporate welfare being the fossil fuel industry received $550 Billion in 2014, just 10% of which would balance t5he federal budget. We found out in Dec 2015 that most foreign multinational corporations paid “no tax” since 2013 not a cent. This giveaway of our hard earned PAYG tax dollars will not create one new job, and will only reward the 0.01% of the global population who own these corporations. These corporations contribute absolutely nothing to the Australian economy except to provide a few starvation wages jobs, we need a better deal, we need a better government.

  2. Wayne Turner

    And sadly we need a better public,that voted for a mob like this…

  3. Jaquix

    Townsville that is an obscene amount of money going to the fossil fuel industry!

  4. Alistair

    Only 15? 🙂

  5. babyjewels10

    And when the Tax Office catches them, they’ll do a deal and end up paying about 10% of what they owe, to clear their debt. Bah!

  6. iggy648

    No. 15 is the killer. I assume that when investors do due diligence, it’s pretty easy for them to see that the nominal tax rate in Australia of 30% is irrelevant, because they see so many companies actually paying so little.

  7. Kaye Lee

    16. Companies should contribute to the well-educated, skilled, healthy workforce provided in a stable political environment with a strong judicial system, with well-established infrastructure in place.

  8. Matters Not

    Companies should contribute to the well-educated, skilled, healthy workforce provided in a stable political environment with a strong judicial system, with well-established infrastructure in place

    Yep! But until the notion of ‘social debt’, or a related concept, becomes part of the ‘common sense’ and is integrated into the ‘economic’ system then we will continue to be treated as mugs.

  9. paulwalter

    Thinking on that six billion, how many worthwhile things could that have financed?

Leave a Reply

Return to home page
Scroll Up
%d bloggers like this: