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The Small Business Tax Cut Not That Effective (Read 2125 times)
imcrookonit
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The Small Business Tax Cut Not That Effective
May 24th, 2015 at 7:02am
 
Small business tax cut 'will not be as effective' as Abbott government thinks

Date
    May 21, 2015
    Canberra Times

The tax cut for small businesses in the Abbott government's second budget will not be as effective as the government wants, economists have warned.   Sad

And the government is also likely to struggle with the 'fairness' question again this year, once all of the budget's numbers have been crunched.

The chief economist of Bank of America Merrill Lynch, Saul Eslake, says the Abbott government's decision in its second budget to cut the company tax rate by 1.5 percentage points, from 30 per cent to 28.5 per cent, for small businesses with annual turnover of $2 million or less will not be as effective as it wants.


He says despite the popular belief that small businesses are big job creators and innovators, the tax cut is unlikely to have "any material impact in stimulating stronger economic growth" because a smaller proportion of companies than expected will benefit from it.

"Almost 63 per cent of small companies will derive no benefit from [the 1.5 percentage point tax cut] because they are neither profitable nor taxable," Mr Eslake has written in a note to clients.

"And for those companies which do derive some benefit from it, the benefit is in most cases likely to be too small to induce them to do something which they would not do otherwise," such as hiring more people or increasing capital expenditure, he said.   Sad

Bureau of Statistics data show there are 2,100,162 actively trading businesses in Australia, and over 1,964,000 (or 93.6 per cent) of them had a turnover of $2 million or less in the 2013/14 financial year.

To take advantage of the Abbott government's tax cut, such businesses have to be profitable and taxable.

But Australian Tax Office data show only 37 per cent of incorporated businesses with a turnover of $2 million or less met that criteria in 2012/13.

Ben Phillips, the principal research fellow at the National Centre for Social and Economic Modelling,  has warned that the Abbott government's second budget will also likely face questions of unfairness again.   Sad

Speaking in Canberra on Thursday, Mr Phillips said the centre's  analysis of last year's budget showed low-income families with children received a financial hit of around $2000 to $4000, "and [for] high-income families there was effectively no hit at all," he said.

Mr Phillips says the families package and age pension package in the government's second budget may not redress the unfairness issue from last year.

"In terms of a day-after impact, I suspect you'll still find that the general unfairness is there," Mr Phillips said.   Sad

"Middle-income families, some low-income families will certainly benefit, but overall I would expect that the fairness/unfairness issue perhaps still remains, but not all of those numbers have been crunched, so we'll have to wait and see."
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longweekend58
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Re: The Small Business Tax Cut very Effective
Reply #1 - May 24th, 2015 at 12:21pm
 
aha... straight from ACTU headquarters.  despite the fact that the retail sector has seen a boost from the small business package and despite the fact that business confidence has risen to its highest point since 2007 (under Howard), the Public Service Times aka Canberra Times thinks otherwise.

fortunately for the rest of us, we know different.
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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."
 
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aquascoot
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Re: The Small Business Tax Cut Not That Effective
Reply #2 - May 24th, 2015 at 12:27pm
 
Mr Phillips wishes to talk about fairness??

Tell him  that employees should be entitled to penalty rates , if and only if the employer is also being paid extra for working weekends, nights and overtimes.

This would seem fair.
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John Smith
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Re: The Small Business Tax Cut Not That Effective
Reply #3 - May 24th, 2015 at 12:36pm
 
longweekend58 wrote on May 24th, 2015 at 12:21pm:
despite the fact that the retail sector has seen a boost from the small business package


how'd that happen? don't these effects kick in after July 1? Cheesy Cheesy Cheesy
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Mattyfisk
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Re: The Small Business Tax Cut Not That Effective
Reply #4 - May 24th, 2015 at 12:59pm
 
John Smith wrote on May 24th, 2015 at 12:36pm:
longweekend58 wrote on May 24th, 2015 at 12:21pm:
despite the fact that the retail sector has seen a boost from the small business package


how'd that happen? don't these effects kick in after July 1? Cheesy Cheesy Cheesy


Longy must be going off the projections. Which data are you using, Longy?
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longweekend58
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Re: The Small Business Tax Cut Not That Effective
Reply #5 - May 24th, 2015 at 1:43pm
 
John Smith wrote on May 24th, 2015 at 12:36pm:
longweekend58 wrote on May 24th, 2015 at 12:21pm:
despite the fact that the retail sector has seen a boost from the small business package


how'd that happen? don't these effects kick in after July 1? Cheesy Cheesy Cheesy


nope.  the $20K tax deductability kicked in from budget night at 7:30pm
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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."
 
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John Smith
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Re: The Small Business Tax Cut Not That Effective
Reply #6 - May 24th, 2015 at 2:34pm
 
longweekend58 wrote on May 24th, 2015 at 1:43pm:
John Smith wrote on May 24th, 2015 at 12:36pm:
longweekend58 wrote on May 24th, 2015 at 12:21pm:
despite the fact that the retail sector has seen a boost from the small business package


how'd that happen? don't these effects kick in after July 1? Cheesy Cheesy Cheesy


nope.  the $20K tax deductability kicked in from budget night at 7:30pm


ok, I vaguely remember Hockey saying something to the effect now that you mention it ... can I see your data on this 'retail boost' that you mentioned?
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longweekend58
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Re: The Small Business Tax Cut Not That Effective
Reply #7 - May 24th, 2015 at 5:45pm
 
John Smith wrote on May 24th, 2015 at 2:34pm:
longweekend58 wrote on May 24th, 2015 at 1:43pm:
John Smith wrote on May 24th, 2015 at 12:36pm:
longweekend58 wrote on May 24th, 2015 at 12:21pm:
despite the fact that the retail sector has seen a boost from the small business package


how'd that happen? don't these effects kick in after July 1? Cheesy Cheesy Cheesy


nope.  the $20K tax deductability kicked in from budget night at 7:30pm


ok, I vaguely remember Hockey saying something to the effect now that you mention it ... can I see your data on this 'retail boost' that you mentioned?


let's see.  it was reported in a newspaper and it was probably a murdoch one so you would reject it.

see why no one bothers with you?
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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."
 
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Re: The Small Business Tax Cut Not That Effective
Reply #8 - May 24th, 2015 at 5:47pm
 
longweekend58 wrote on May 24th, 2015 at 1:43pm:
the $20K tax deductability kicked in from budget night at 7:30pm



i don't think it's in the bag quite that easily Longie


Heading into a sitting fortnight for the House of Representatives, Prime Minister Tony Abbott is urging the Labor Party to "work with us" in backing the $20,000 instant asset write-off for small business when budget bills start to be debated.

https://au.news.yahoo.com/a/28209712/budget-set-to-again-face-senate-hurdles/
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I hope that bitch who was running their brothels for them gets raped with a cactus.
 
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John Smith
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Re: The Small Business Tax Cut Not That Effective
Reply #9 - May 24th, 2015 at 5:48pm
 
longweekend58 wrote on May 24th, 2015 at 5:45pm:
John Smith wrote on May 24th, 2015 at 2:34pm:
longweekend58 wrote on May 24th, 2015 at 1:43pm:
John Smith wrote on May 24th, 2015 at 12:36pm:
longweekend58 wrote on May 24th, 2015 at 12:21pm:
despite the fact that the retail sector has seen a boost from the small business package


how'd that happen? don't these effects kick in after July 1? Cheesy Cheesy Cheesy


nope.  the $20K tax deductability kicked in from budget night at 7:30pm


ok, I vaguely remember Hockey saying something to the effect now that you mention it ... can I see your data on this 'retail boost' that you mentioned?


let's see.  it was reported in a newspaper and it was probably a murdoch one so you would reject it.

see why no one bothers with you?


no, but I can see why you run away with childish excuses . You're pathetic with your stupid claims that you consistently make up.
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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.
 
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longweekend58
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Re: The Small Business Tax Cut Not That Effective
Reply #10 - May 24th, 2015 at 6:08pm
 
John Smith wrote on May 24th, 2015 at 5:47pm:
longweekend58 wrote on May 24th, 2015 at 1:43pm:
the $20K tax deductability kicked in from budget night at 7:30pm



i don't think it's in the bag quite that easily Longie


Heading into a sitting fortnight for the House of Representatives, Prime Minister Tony Abbott is urging the Labor Party to "work with us" in backing the $20,000 instant asset write-off for small business when budget bills start to be debated.

https://au.news.yahoo.com/a/28209712/budget-set-to-again-face-senate-hurdles/


the starting date was always dependant on it actually passing.  but it is worth noting that labor has agreed to support it anyhow.
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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."
 
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longweekend58
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Re: The Small Business Tax Cut Not That Effective
Reply #11 - May 24th, 2015 at 6:09pm
 
John Smith wrote on May 24th, 2015 at 5:48pm:
longweekend58 wrote on May 24th, 2015 at 5:45pm:
John Smith wrote on May 24th, 2015 at 2:34pm:
longweekend58 wrote on May 24th, 2015 at 1:43pm:
John Smith wrote on May 24th, 2015 at 12:36pm:
longweekend58 wrote on May 24th, 2015 at 12:21pm:
despite the fact that the retail sector has seen a boost from the small business package


how'd that happen? don't these effects kick in after July 1? Cheesy Cheesy Cheesy


nope.  the $20K tax deductability kicked in from budget night at 7:30pm


ok, I vaguely remember Hockey saying something to the effect now that you mention it ... can I see your data on this 'retail boost' that you mentioned?


let's see.  it was reported in a newspaper and it was probably a murdoch one so you would reject it.

see why no one bothers with you?


no, but I can see why you run away with childish excuses . You're pathetic with your stupid claims that you consistently make up.


it was reported in the Australian and several other newspapers which you will simply reject as propoganda.  and you know you would so dont lie.
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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."
 
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John Smith
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Re: The Small Business Tax Cut Not That Effective
Reply #12 - May 24th, 2015 at 6:30pm
 
longweekend58 wrote on May 24th, 2015 at 6:09pm:
it was reported in the Australian and several other newspapers which you will simply reject as propoganda.  and you know you would so dont lie.


put up the data longie,  stop pretending you know what I will and won't reject.
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Re: The Small Business Tax Cut very Effective
Reply #13 - May 24th, 2015 at 6:31pm
 
longweekend58 wrote on May 24th, 2015 at 12:21pm:
aha... straight from ACTU headquarters. .


Strange. I could have sworn it came from the National Centre for Social and Economic Modelling.

I would have thought you’d be a fan.
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Mattyfisk
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Re: The Small Business Tax Cut Not That Effective
Reply #14 - May 24th, 2015 at 6:35pm
 
longweekend58 wrote on May 24th, 2015 at 6:08pm:
John Smith wrote on May 24th, 2015 at 5:47pm:
longweekend58 wrote on May 24th, 2015 at 1:43pm:
the $20K tax deductability kicked in from budget night at 7:30pm



i don't think it's in the bag quite that easily Longie


Heading into a sitting fortnight for the House of Representatives, Prime Minister Tony Abbott is urging the Labor Party to "work with us" in backing the $20,000 instant asset write-off for small business when budget bills start to be debated.

https://au.news.yahoo.com/a/28209712/budget-set-to-again-face-senate-hurdles/


the starting date was always dependant on it actually passing. .


Sorry, are you saying it hasn’t passed yet?

Please clear this one up too, Longy.

Sorry to.ask. I know you’re busy.
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