Monday, May 14, 2018

What an outrage

The Federal Liberal Party conservative government is pushing for a huge cut to company tax, down to 25%. Given how few hugely profitable companies seem to pay any tax at all, this is perhaps a moot point.

The Federal Liberal conservative government has already budgeted for personal income tax cuts. Let Tim Colebatch, a long time respected economics writer at The Age newspaper, spell it out. A cleaner on $30,000 a year will get an annual tax cut of $200. (I dispute that figure of $30,000 per annum for a cleaner, unless they are casual, part time or contract. A full time wage for a cleaner would be over $40,000)

A nurse on about $80,000 per year will get a tax cut of $540 per year. I am not a nurse  but the tax cut is close to what I would get, and I shall spend the extra on martinis, Sobrannies and a little Mary Jane. Yipee.

But get this, a solicitor on $200,000 per annum, will get a tax cut of over $7,000. How can any person with any kind of conscience think this is right?

Yes, there is a little detail missing, but as always, it is all about perception.

In other Federal budget matters, pensioners can now get 1.5 times their pension in a government loan scheme where the government takes a mortgage over their house. Please don't tell Mother.

34 comments:

  1. Sigh. And they are also saying that the tax cuts for those at the lowest end of the scale CAN only go through if the other cuts (including company cuts) are also passed.

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    1. EC, a fairly recent tatic where things are tied together to increase the likelihood of being passed, but often is not and the legislation has to be pulled apart to get anything through.

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  2. The rich look after their own, look at it this way if you earn a lot of money you need money to sustain your lifestyle if you are are poor you need money to live from day to day but the rich are not concerned about that they are to busy sustaining their lifestyle.
    Merle..........

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    1. Merle, as usual you are quite correct. Some people have some very basic needs and can live cheaply. Some cannot survive on the same money. Then as you say, for some it is about lifestyle and keeping with Jones'.

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    2. I manage better than a lot of my friends because I don't drink or smoke, but even with that advantage it's still a payday to payday living.

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  3. Anonymous8:06 am

    Who'd trust this government to manage the mortgage on your house? They can't even manage the country. Can't meet your payments old timer? Off to the salt mines with you. - Ian

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    1. Ian, and administered I suppose by the magnificently incompetent and under staffed Centrelink.

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  4. The cuts, if they do go through, won’t occur until July 2019 either.

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    1. Victor, there was a Twitter hashtag on budget night, something like #keep my $10 tax cut, meaning it be spent on hospitals etc.

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  5. Bastard mongrels.

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    1. Jayne, you don't need to think about your response? If you did you might add bloody as well.

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  6. It always appears to me that every government gives with one hand and takes with the other.

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    1. Cathy, well yes, but just not to the one person. They take from one to give to another, and it is to be done the wrong way in this case.

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  7. Sounds like your tax system is some what being like our here in United States. It start with President Reagan which is trickle down ecomomics and pretty much smash the middle class.

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    1. Dora, trickle down is now a disproved economic theory. It simply didn't work.

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  8. Sound like a proper mess to me, they are always looking or seem to be their so called rich mates.

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    1. Margaret, that is what it seems like and how it is.

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    2. Andrew - there is a photo of crab apple in spring on post :)

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  9. Usually money is better managed by the earner than by the government. Keep money circulating; it keeps people in work. That solicitor will now be able to co-employ that cleaner with 5 other households.

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    1. Cro, the first part is probably true, but we need taxes to pay for things and the less well off should not be paying more and more tax while the rich pay less and less. The solicitor will probably pay off his mortgage more quickly and then buy a negatively geared investment property, in the name of the most tax beneficial relative he can think of.

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  10. The thing is they get away with it. When is the next election?

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    1. Grace, I think there is one more budget before the next election, and it will be full of niceness and kindness.

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  11. Hand on heart, I solemnly vow to never tell your mother.
    I didn't pay attention to the budget, didn't even read the newspaper articles, I rarely understand these things, apart from knowing the largesses are always skewed in favour of politicians and other high earners, lawyers, big business etc.

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    1. River, without reading the details, you know how it all works.

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  12. I hadn't paid much attention to the budget, but I have to agree with you Andrew. As for company taxes being lowered, I can't think why, as most of the big multinationals hardly pay tax! I thought it was just recently that the Finance Minister said they were going after all these companies to make sure they would pay their due....now they are reducing it?
    Go figure!

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    1. Sami, I am confused by your last sentence, which is perhaps how it is all is. Confusing.

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  13. We have that here, where you defer taxes on a house you own as a senior and in return the taxes must be paid off by heirs or the house given over to the state once you die.

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    1. Strayer, whoa. You have to pay tax on your home when you are an old and not wealthy person? Or is the tax you mention a local city tax?

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  14. Giving huge tax deductions to the wealthy and small tax deductions to low salaried workers is a typical conservative obscenity. Yet the PM's personal popularity has gone up since the tax changes were first publicised!?! I don't understand it :(

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    1. Hels, it rather depends which media you read. Other sources say Mal's popularity has gone down.

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  15. The tax cuts certainly have a familiar ring to them.

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    1. Sandra, we hear a little about your own tax cuts to big business here. Not good.

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  16. I see, everywhere in our western world it's the same. The poor have to pay for the rich ! Even our pension is taxed ! You work your whole life and pay for your pension and then you get less because of the taxes !

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    1. Gattina, we do score better there. Generally pensions and superannuation are not taxed, but we may not be comparing the same things.

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