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Why should the rich not get more tax cuts? (Read 6057 times)
Sir Grappler Truth Teller OAM
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Re: Why should the rich not get more tax cuts?
Reply #45 - May 13th, 2016 at 6:49pm
 
... and besides - miner may well 'build their own roads' - it's written off as 'research and DEVELOPMENT costs'...

Only way to get a decent cop out of the Guv is to be a 'big boy' .....
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lee
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Re: Why should the rich not get more tax cuts?
Reply #46 - May 13th, 2016 at 7:09pm
 
Bam wrote on May 13th, 2016 at 6:46pm:
* Why are we paying billions of dollars in subsidies to mining companies, 85% of which are foreign owned?



Ah , you quote the Australia Institute a left-leaning organisation, where everything is a subsidy if it is not Green.

Did you read further down, before cherry-picking?

'The peak mining lobby, the Minerals Council of Australia, is hotly contesting the report's findings.

Its chief executive Brendan Pearson says regular analysis by the Commonwealth Government's Productivity Commission finds mining does not receive public largesse.

"The most independent analysis of assistance to industry sectors in Australia is that done by the Productivity Commission. It has found, year after year, that the mining industry receives no subsidies," he responded.'

'The Queensland Resources Council (QRC), representing mining companies in the state that the Australia Institute report says has the biggest subsidies, says the report is full of "howlers" and "would embarrass the North Korean government."

The council's chief executive Michael Roche says most of the Queensland projects included in the study were paid for by mining companies, a fact he says is ignored in the study.

"Almost every capital project undertaken by government-owned businesses for resources sector power supply and distribution, water, rail and port capacity gets a headline," he said.

"These projects were executed on a fully commercial basis, with resources companies entering into commercial contracts that underwrote the capital expenditure and provided commercial returns to government-owned businesses."

Mr Roche argues that the state governments involved actually profited from much of the infrastructure investment.'

http://www.abc.net.au/news/2014-06-24/mining-industry-receives-billions-of-dolla...
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Sir Grappler Truth Teller OAM
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Re: Why should the rich not get more tax cuts?
Reply #47 - May 13th, 2016 at 7:14pm
 
lee wrote on May 13th, 2016 at 7:09pm:
Bam wrote on May 13th, 2016 at 6:46pm:
* Why are we paying billions of dollars in subsidies to mining companies, 85% of which are foreign owned?



Ah , you quote the Australia Institute a left-leaning organisation, where everything is a subsidy if it is not Green.

Did you read further down, before cherry-picking?

'The peak mining lobby, the Minerals Council of Australia, is hotly contesting the report's findings.

Its chief executive Brendan Pearson says regular analysis by the Commonwealth Government's Productivity Commission finds mining does not receive public largesse.

"The most independent analysis of assistance to industry sectors in Australia is that done by the Productivity Commission. It has found, year after year, that the mining industry receives no subsidies," he responded.'

'The Queensland Resources Council (QRC), representing mining companies in the state that the Australia Institute report says has the biggest subsidies, says the report is full of "howlers" and "would embarrass the North Korean government."

The council's chief executive Michael Roche says most of the Queensland projects included in the study were paid for by mining companies, a fact he says is ignored in the study.

"Almost every capital project undertaken by government-owned businesses for resources sector power supply and distribution, water, rail and port capacity gets a headline," he said.

"These projects were executed on a fully commercial basis, with resources companies entering into commercial contracts that underwrote the capital expenditure and provided commercial returns to government-owned businesses."

Mr Roche argues that the state governments involved actually profited from much of the infrastructure investment.'

http://www.abc.net.au/news/2014-06-24/mining-industry-receives-billions-of-dolla...


Ah , you quote the Minerals Council of Australia a right-leaning organisation, where everything is a tax loss if it is anywhere on the books.

Did you read further down, before cherry-picking?


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Re: Why should the rich not get more tax cuts?
Reply #48 - May 13th, 2016 at 7:20pm
 
Sir Grappler Truth Teller OAM wrote on May 13th, 2016 at 7:14pm:
Ah , you quote the Minerals Council of Australia a right-leaning organisation, where everything is a tax loss if it is anywhere on the books.

Did you read further down, before cherry-picking?



Yes I read "Commonwealth Government's Productivity Commission finds mining does not receive public largesse.

"The most independent analysis of assistance to industry sectors in Australia is that done by the Productivity Commission. It has found, year after year, that the mining industry receives no subsidies," he responded.'


Did you not read the post?
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Sir Grappler Truth Teller OAM
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Re: Why should the rich not get more tax cuts?
Reply #49 - May 13th, 2016 at 7:22pm
 
So a Liberal-appointed body with an agenda finds that mining receives no subsidies.... Right -O.....
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“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
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Re: Why should the rich not get more tax cuts?
Reply #50 - May 13th, 2016 at 7:25pm
 
Sir Grappler Truth Teller OAM wrote on May 13th, 2016 at 7:22pm:
So a Liberal-appointed body with an agenda finds that mining receives no subsidies.... Right -O.....



Actually you will find Labor appointed Commissioners among them. Curious,eh? And Libs have only been in three years, I wonder who said they didn't receive subsidies before that?
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Re: Why should the rich not get more tax cuts?
Reply #51 - May 13th, 2016 at 10:03pm
 
Bam wrote on May 13th, 2016 at 6:46pm:
crocodile wrote on May 13th, 2016 at 5:30pm:
Bam wrote on May 13th, 2016 at 2:38pm:
crocodile wrote on May 13th, 2016 at 1:32pm:
lee wrote on May 13th, 2016 at 12:12pm:
GordyL wrote on May 13th, 2016 at 8:13am:
winding back fuel subsidies for mining.



You do know they are fuel tax credits, aka fuel rebates? That they are added into taxable income? They would have to be the only subsidies tax is paid on.


The fuel tax was added in the first place for roads funding. Miners build their own roads or the fuel is used in fixed plant. It isn't a subsidy it is a rebate because they don't make use of the infrastructure that the tax was supposed to be raised for.

Which is a quite specious argument from the industry. Do ordinary folks get rebates for petrol for lawnmowers or diesel for generators? No.

85% of the mining industry is foreign owned. We spend roughly as much on diesel rebates for foreigners as we spend on foreign aid.

We would be better off scrapping all of the fuel rebates and removing excise from alternative diesel fuels such as biodiesel and synthetics. Anyone who wants tax-free diesel for mining or farms can still do so under this plan, but would be growing new domestic industries and reducing our reliance on imports.


What a load of bollocks. They aren't using the end infrastructure. End of story. By all means lobby for it's removal. End result is it becomes a greater input cost and reduces profit and then company tax. Take your pick.

It is still a specious argument. It is also based on a lie - miners DO use the roads that everyone else pays for. How do you think those enormous mining trucks get to the mines?

Pull the other one. Big deal, they get a once off ride to work. So what. Let's just appoint auditors to see just what get used. Fix unemployment I suppose. They can all work for the ATO as auditors reading through mountains of paperwork.


If you want to have excise-free diesel for miners, you need to explain the following:
* Who pays for the roads and rails when miners use public infrastructure?
Are you saying there are no charges levied at all.

* Why do miners get publicly-funded private roads and rail even though they are not contributing excise?
Who says they're using free roads.

* Why are we paying billions of dollars in subsidies to mining companies, 85% of which are foreign owned?

Doesn't matter a stuff. The company gets the rebate, not the shareholder. The shareholders distributions are always paid after tax no matter where the they are domiciled. You can make noises to take it away if you want. It will just mean a reduction in gross profit and then tax receipts. Swings and roundabouts.


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Very funny Scotty, now beam down my clothes.
 
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crocodile
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Re: Why should the rich not get more tax cuts?
Reply #52 - May 13th, 2016 at 10:05pm
 
lee wrote on May 13th, 2016 at 7:25pm:
Sir Grappler Truth Teller OAM wrote on May 13th, 2016 at 7:22pm:
So a Liberal-appointed body with an agenda finds that mining receives no subsidies.... Right -O.....



Actually you will find Labor appointed Commissioners among them. Curious,eh? And Libs have only been in three years, I wonder who said they didn't receive subsidies before that?


It's not even a subsidy. It's a rebate. There is a difference.
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Very funny Scotty, now beam down my clothes.
 
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Sir Grappler Truth Teller OAM
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Re: Why should the rich not get more tax cuts?
Reply #53 - May 13th, 2016 at 10:13pm
 
crocodile wrote on May 13th, 2016 at 10:05pm:
lee wrote on May 13th, 2016 at 7:25pm:
Sir Grappler Truth Teller OAM wrote on May 13th, 2016 at 7:22pm:
So a Liberal-appointed body with an agenda finds that mining receives no subsidies.... Right -O.....



Actually you will find Labor appointed Commissioners among them. Curious,eh? And Libs have only been in three years, I wonder who said they didn't receive subsidies before that?


It's not even a subsidy. It's a rebate. There is a difference.



I believe I addressed that issue in the context that it was a non-payment of excise due to their not operating on public roads, and thus not bearing the cost of maintenance and upgrade of such.... and that it was essentially tax-neutral in that sense.....

But you need to read the strand before commenting.... just saying... as perhaps THE only honest broker here - I always like to go back and actually READ the comments made and make my decision on my stance based on that input with regard to my own knowledge and understanding.

Just saying....

BTW - this 'productivity commission' of old mates and cronies has clearly stated for umpteen years that the productivity of the individual worker has risen.... but the productivity of 'capital' - read Investment in real terms - has fallen..........

How then, Monsieur, do you stand with regard to negative gearing and the 'dead stock' involved in serial house ownership (as opposed to HOME ownership)?
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“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
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Re: Why should the rich not get more tax cuts?
Reply #54 - May 13th, 2016 at 10:19pm
 
Here is my comment:-

"So why bother giving with one hand and then taking with the other?  I'll tell you why - because these rebates are simply to cover the idea that these off-roaders do not use the roads and thus should not pay road tax or equivalent..... therefore the 'rebate' is in no way any effect on profit or taxable income... it is not a cash handout, it is simply a neutral measure and gains nothing and costs nothing to either the end user or the government.

That's the theory anyway.. what the argument becomes is that this is tax money foregone - in the eyes of some....... and thus is a 'black hole' of some kind.  IF - and that is a might big IF all that tax lovely from fuel actually went back into road and transport infrastructure..... few would argue the merits of fuel excise exemption.... farmers get it since they operate on private land and not roads, and it is simply too hard to keep track of their visits to the TAB in town etc....."
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“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
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Re: Why should the rich not get more tax cuts?
Reply #55 - May 13th, 2016 at 10:54pm
 
Sir Grappler Truth Teller OAM wrote on May 13th, 2016 at 10:13pm:
crocodile wrote on May 13th, 2016 at 10:05pm:
lee wrote on May 13th, 2016 at 7:25pm:
Sir Grappler Truth Teller OAM wrote on May 13th, 2016 at 7:22pm:
So a Liberal-appointed body with an agenda finds that mining receives no subsidies.... Right -O.....



Actually you will find Labor appointed Commissioners among them. Curious,eh? And Libs have only been in three years, I wonder who said they didn't receive subsidies before that?


It's not even a subsidy. It's a rebate. There is a difference.



I believe I addressed that issue in the context that it was a non-payment of excise due to their not operating on public roads, and thus not bearing the cost of maintenance and upgrade of such.... and that it was essentially tax-neutral in that sense.....

But you need to read the strand before commenting.... just saying... as perhaps THE only honest broker here - I always like to go back and actually READ the comments made and make my decision on my stance based on that input with regard to my own knowledge and understanding.

Just saying....

BTW - this 'productivity commission' of old mates and cronies has clearly stated for umpteen years that the productivity of the individual worker has risen.... but the productivity of 'capital' - read Investment in real terms - has fallen..........

So Grapples, where do you suppose the gains in labour productivity came from ( or productivity of the individual worker as you put it ). It has been on the upward path for yonks. But why.


How then, Monsieur, do you stand with regard to negative gearing and the 'dead stock' involved in serial house ownership (as opposed to HOME ownership)?

That has been dealt with innumerable times in other threads. As it turns out, I have no real problem with it.

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Very funny Scotty, now beam down my clothes.
 
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Sir Grappler Truth Teller OAM
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Re: Why should the rich not get more tax cuts?
Reply #56 - May 13th, 2016 at 11:17pm
 
It may be that the worker is motivated by being treated as a serf with a disposable job and income and life.... but I don't believe that is the case, since the average worker is no more genuinely productive under duress... actually the opposite... and let's be honest.... many such in the big cities, who these days are from countries where working hard is an option..... no Asian country has a genuine hard-working genuine labour force... are in that category.

So we are left with three things:-

Either the worker is more productive.....

The standards are now much lower.....

Or we are being lied to overall for some gain for someone thus far unspecified......

In an environment in which genuine productivity has been subordinated to subordination to The Boss, who operates a rip-off system.... what genuine productivity can there actually be?  WHAT is being produced?

I lean towards "we are being lied to royally" (again), and this is all smoke and mirrors to hide the fact that this country is falling down as we speak... and there is NO genuine productivity anywhere.....
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« Last Edit: May 13th, 2016 at 11:22pm by Sir Grappler Truth Teller OAM »  

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Re: Why should the rich not get more tax cuts?
Reply #57 - May 13th, 2016 at 11:58pm
 
Grapples, I see that you do not really understand productivity. That's OK, not so many really do. It is real and labour productivity has been growing steadily for about 200 years.

You will find that productivity is no more than output divided by hours worked. That is, increased production per labour input. It is due entirely to the march of technology. It's easy to visualise. I can make the guy with a shovel more productive by buying him a bulldozer.

I can tell you that labour productivity is due to investment in capital equipment or the tools that the workers use to produce the goods and services that we consume.

Given that labour productivity continues to rise makes your assumption that business has stopped investment quite untrue. In fact with capital productivity falling while labour is growing simply means that each increment of labour productivity is provided by increasing capital cost. Basically, less bang for the buck per investment dollar.

But hang on, labour productivity is growing. Therefore investment is still occurring but with higher financial impositions. That is the reason why wages growth is falling.

Buy yourself a decent macro textbook. It's actually quite interesting.
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Very funny Scotty, now beam down my clothes.
 
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Re: Why should the rich not get more tax cuts?
Reply #58 - May 14th, 2016 at 1:13am
 
crocodile wrote on May 13th, 2016 at 11:58pm:
Grapples, I see that you do not really understand productivity. That's OK, not so many really do. It is real and labour productivity has been growing steadily for about 200 years.

You will find that productivity is no more than output divided by hours worked. That is, increased production per labour input. It is due entirely to the march of technology. It's easy to visualise. I can make the guy with a shovel more productive by buying him a bulldozer.

I can tell you that labour productivity is due to investment in capital equipment or the tools that the workers use to produce the goods and services that we consume.

Given that labour productivity continues to rise makes your assumption that business has stopped investment quite untrue. In fact with capital productivity falling while labour is growing simply means that each increment of labour productivity is provided by increasing capital cost. Basically, less bang for the buck per investment dollar.

But hang on, labour productivity is growing. Therefore investment is still occurring but with higher financial impositions. That is the reason why wages growth is falling.

Buy yourself a decent macro textbook. It's actually quite interesting.


So now extend your reasoning to incorporate economic factors such as market forces, transport and such, costs of production..... and let us see why there is some argument over the cost of wages here and now....

'investment' does NOT have to increase to incorporate increased labour productivity - all that is required is to establish a datum and then operate on that basis - and the problems begin when the market forces, including all costs of production and distribution, do not permit a profit under the existing approach.

So - UNLESS there is major investment in genuine infrastructure, and not in short term fixes - there is no outcome other than destruction of the organism that generates opportunity for profit for both worker and investor - and thus ALL lose from declining productivity in inappropriate investment.

As an example - if I run a household, and wish to make it more 'productive' - do I invest in passive  investments such as insulation (etc), or do I invest in an avenue that will recoup positive revenue for my family and home, such as getting a second job, given that the 'opportunity cost' of each is the same (measure that as you will)?

These are the kinds of decision that 'board members' (other than government ones) face every day....

Now - if I am a 'rich person' with all the avenues to minimise my tax and shuffle it off into other avenues and thus reap the benefit...  INCLUDING what I have already mentioned - the ability of the 'business' to offload its running costs that a family does not have...   how then do I decide which avenue for investment is the most appropriate to ensure the ongoing prosperity of myself AND those who do the work required to ensure that prospertity?

By playing 'the bottom line' at all times?

What you are arguing for here is a totally controlled economy, based on imposition, and not on free choice and market forces...

This is your dilemna.... without the input and social productivity of the ordinary person  = the worker, and the organisation itself, no organisation  as a whole can prosper...

The reality is that the prosperity of a company or a nation relies on the prosperity of its people..... and forcing those people to work for lesser conditions is NOT prosperity - it is slavery, and no slave works as well as a willing participant.
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« Last Edit: May 14th, 2016 at 1:30am by Sir Grappler Truth Teller OAM »  

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Re: Why should the rich not get more tax cuts?
Reply #59 - May 14th, 2016 at 5:34am
 
Sir Grappler Truth Teller OAM wrote on May 13th, 2016 at 6:36pm:
BigOl64 wrote on May 13th, 2016 at 1:55pm:
John Smith wrote on May 13th, 2016 at 1:44pm:
crocodile wrote on May 13th, 2016 at 1:32pm:
Miners build their own roads or the fuel is used in fixed plant. It isn't a subsidy it is a rebate because they don't make use of the infrastructure that the tax was supposed to be raised for.



really? I think that's a fallacy

I used to see hundreds of tucks full or coal or ore going up and down Pircton Rd and Mt Ousley Rd every day on their way to the Port Kembla steelworks ... miners didn't pay for those roads although the trucks certainly caused the most damage on them. Sire, miners might build the roads (or rail) around the mine, but the ports or refineries they ship to are usually a long way away from the mines



The miner will rail to a port before trucking it there you are talking millions of tonnes of product per year and as for the Port Kembla, I dare say it was the steelworks doing the trucking, not the miner.

In some case they may use public roads, but it will be 'normal' trucks doing the work and they also get  tax concessions for fuel just like every other truckie in Aus.



Depends on whether or not the excise exempt (generic name producer) fills the trucks.... dun'it?  I never got fuel excise privilege when I was operating commercially... though I got 'essential services' fuel when things were really bad....

Show me where truckies ordinaire get fuel excise exemption..... I've been out of the loop for a while.. but I thought they paid for excise at the pump like everyone else.



Did you not claim you fuel as a business expense?


I would assume it would be an operational expense therefore claimable.


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