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Will Australia Get A Tycoon Tax (Read 338 times)
whiteknight
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Will Australia Get A Tycoon Tax
Oct 6th, 2021 at 6:30am
 
Greens release corporate tax plan to generate $338 billion over the next decade
ABC News.
Mon 6 Sep 2021

Large companies and mining corporations could be paying more tax under a plan by the Greens that is reminiscent of a former Labor policy.

Key points:
A company with a turnover of more than $100 million would face a 40 per cent super-profits tax
The Greens want to see the tax spent on Medicare, JobSeeker and housing
Experts say Australia's corporate tax rate is already higher then many countries
Leader Adam Bandt said the measures would bring in $338 billion over the next decade, which would help fund dental appointments and mental health support, as well as lift the JobSeeker rate.

Elements of the policy mirror Labor's controversial mining tax that passed in 2012 but was later repealed by then-prime minister Tony Abbott.

The Greens' Corporate Super-Profits Tax is the party's attempt to stake out some political ground ahead of the looming federal election, which is likely to be held next year.

However, there are a lot of pieces of the political puzzle that need to fall into place for it to become a reality.

Greens say higher tax is needed
Mr Bandt believes many Australians support big business being hit with additional costs.

"While everyone else has suffered through the pandemic, billionaire corporations have made out like bandits and profits are at record highs," he said.

"A 'tycoon tax' is essential because there's huge wealth in this country, but it's being hoarded by a greedy few."

Under the proposal, a company that has a turnover of more than $100 million would be slugged with the 40 per cent corporate super-profits tax.


The new tax would apply to a company's net revenue, after income tax and a "fair return to shareholders" is deducted.

Independent economist Saul Eslake explained how it could work.

"In effect, they're saying that any company which generates profits that represent a return to shareholders in excess of 6 per cent, or thereabouts, after a payment of the normal company tax, should be paying an additional 40 per cent of those so-called excess profits to the government by way of tax," he said.

Mr Eslake argued that Australia's corporate tax rate was already higher than many other countries.

"Among the 38 or so member countries of the OECD, only Portugal and Colombia, neither of which are particularly developed, have higher statutory corporate tax rates than Australia does," he said.

"Indeed, Australia gets a larger proportion of its total tax revenue from company tax than most other so-called Western economies.

"So the case for Australia to do more in that context is, I think, not very compelling."

The tax bill issued to mining companies would be assessed on a project-by-project basis, which is what was recommended in the Ken Henry review commissioned by the former Labor government.

It led to the introduction of the mining tax in 2012 after years of negotiating and lobbying.

That tax was repealed two years later by the Coalition government.

However Mr Bandt is confident there is still support within opposition ranks to bring back such a tax.

"I think the case for a super-profits tax on these billionaire corporations, in a style originally proposed by Kevin Rudd, is only going to grow," he said.

Collecting billions to help millions
The policy would raise $338 billion over a decade, according to costings by the parliamentary budget office.

Million-dollar income, no tax
The iconic family board game, Monopoly.
The ATO's annual tax stats reveal how many wealthy Australians contributed nothing to the government in 2018-19, where the nation's wealthiest and poorest live, and what kind of work they do.

Read more
Mr Bandt said he wanted the money to be spent on affordable housing, lifting the JobSeeker rate and boosting Medicare funding.

"We should be firstly using this money to get dental fully into Medicare, mental health fully into Medicare, to help deal with some of the stresses of the pandemic," he said.

"That is going to go a long way to relieving the pressures on everyday people and making life better for all of us.

"And if the billionaires and big corporations have to pay their fair share and pay a bit more to do that, I think most people would agree with that."

Taking from the past and looking to the future
The COVID-19 pandemic has all but sidelined opposition and minor parties, who have struggled to cut through in the past 18 months because they haven't been able to offer serious alternatives to what the government has provided.

Today's announcement is the Greens' attempt to capture the public's attention and also put pressure on Labor to consider how it will fund essential services, like Medicare, into the future.

"We are putting a very clear and bold plan on the table that will deliver for people," Mr Bandt said.

But the delivery of the policy rests on several elements falling into place, including Labor winning minority government.


Although the Greens are hopeful they can hold the balance of power after the next federal election, the ABC's election analyst says right now polls indicate Labor could win majority.
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Grappler Truth Teller Feller
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Re: Will Australia Get A Tycoon Tax
Reply #1 - Oct 6th, 2021 at 7:23am
 
Well - the Guv didn't exactly 'drop the ball' over the Pandora Papers cash flows - it looked at the ball and said -

"We don't play this game with a ball!  This game is played with brown paper bags, having a classed society where people with cash are considered 'better' and above rules, and acting out of self-interest."


This was a calculated matter of policy ..... let us not be naive and suggest they had a little accident with the ball.... the game was built that way.

"The new tax would apply to a company's net revenue, after income tax and a "fair return to shareholders" is deducted. "

Le's hear it from Andre to tell us all about the rich 'paying 90% tax' - never happen - they paid near that on ONLY the very top bit of their incomes after taking out all perks.... it's tough having more than you could reasonably spend coming in.... better to take a little bit more from those struggling - they're already so far down they won't notice anyway....

What's a loaf of bread less a week on the table of an old legless war pensioner in Britain?  Yes - Thatcher cut War Veteran Pensions...... while removing the tiny slice at the very top that the super-rich had to pay, so they didn't suffer.... poor darlings..

What amazes me is how many of the superfat can continue to operate as a superannuation fund, pay no income tax, and yet keep adding to the pile so the pile is bigger year by year and still pays no tax.

Anyone?
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« Last Edit: Oct 6th, 2021 at 7:29am by Grappler Truth Teller Feller »  

“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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lee
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Re: Will Australia Get A Tycoon Tax
Reply #2 - Oct 6th, 2021 at 12:19pm
 
whiteknight wrote on Oct 6th, 2021 at 6:30am:
A company with a turnover of more than $100 million would face a 40 per cent super-profits tax



whiteknight wrote on Oct 6th, 2021 at 6:30am:
The new tax would apply to a company's net revenue, after income tax and a "fair return to shareholders" is deducted.



So which s it? A turnover tax or a super-profits tax. Bandt doesn't seem to know the difference.
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philperth2010
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Re: Will Australia Get A Tycoon Tax
Reply #3 - Oct 6th, 2021 at 4:55pm
 
Sounds fair enough!!!

Quote:
Under the proposal, a company that has a turnover of more than $100 million would be slugged with the 40 per cent corporate super-profits tax. The new tax would apply to a company's net revenue, after income tax and a "fair return to shareholders" is deducted.


The 40% tax applies to companies that turnover more than $100 million after income tax and a "fair return to shareholders" is deducted!!!

Roll Eyes Roll Eyes Roll Eyes
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Re: Will Australia Get A Tycoon Tax
Reply #4 - Oct 6th, 2021 at 5:00pm
 
philperth2010 wrote on Oct 6th, 2021 at 4:55pm:
Sounds fair enough!!!

Quote:
Under the proposal, a company that has a turnover of more than $100 million would be slugged with the 40 per cent corporate super-profits tax. The new tax would apply to a company's net revenue, after income tax and a "fair return to shareholders" is deducted.


The 40% tax applies to companies that turnover more than $100 million after income tax and a "fair return to shareholders" is deducted!!!

Roll Eyes Roll Eyes Roll Eyes


they won't collect a cent.

If it doesn't kick in until they profit $100m 'after tax and return to investors', they'll just return enough to investors to make sure they fall under that $100m every year
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Re: Will Australia Get A Tycoon Tax
Reply #5 - Oct 7th, 2021 at 1:37pm
 
John Smith wrote on Oct 6th, 2021 at 5:00pm:
philperth2010 wrote on Oct 6th, 2021 at 4:55pm:
Sounds fair enough!!!

Quote:
Under the proposal, a company that has a turnover of more than $100 million would be slugged with the 40 per cent corporate super-profits tax. The new tax would apply to a company's net revenue, after income tax and a "fair return to shareholders" is deducted.


The 40% tax applies to companies that turnover more than $100 million after income tax and a "fair return to shareholders" is deducted!!!

Roll Eyes Roll Eyes Roll Eyes


they won't collect a cent.

If it doesn't kick in until they profit $100m 'after tax and return to investors', they'll just return enough to investors to make sure they fall under that $100m every year

The policy could do with some tweaking. It could be made simpler.

If the Greens are proposing a 40% super profits tax, what are they really saying here? Are they saying the company tax rate on the turnover over $100 million is taxed at 40%? And why have deductions such as "fair return to shareholders"?

There is a simpler approach that should be considered. The Greens should look at all the tax loopholes and tax breaks that large companies use to "minimise" their tax, and abolish the ones that are being openly abused or are too generous. So much corporate tax is being lost each year to these rorts that the average corporate tax rate is closer to 20% than 30%. About one large company in three pays no company tax in any one year, and many of these companies NEVER pay company tax.

Closing company tax loopholes would raise more money than the Greens' super profits tax.

Franking credits should also be abolished with some of the proceeds used to fund company tax cuts and the rest being used to fund subsidies to companies (with this pool of funds being the sole source of corporate subsides in the federal budget).
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Re: Will Australia Get A Tycoon Tax
Reply #6 - Oct 7th, 2021 at 2:08pm
 
It's not going to happen because the Greens are a lunatic fringe party who will never have the numbers to rule.
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Re: Will Australia Get A Tycoon Tax
Reply #7 - Oct 7th, 2021 at 4:07pm
 
Baronvonrort wrote on Oct 7th, 2021 at 2:08pm:
It's not going to happen because the Greens are a lunatic fringe party who will never have the numbers to rule.

The Nationals are a lunatic fringe party who will never have the numbers to rule. That doesn't stop them imposing their fringe policies on the Liberals in secret agreements when governing in coalition.
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