tax burden on Australian economy

Labor Making Promises to a Few, Punishing the Rest

Last Thursday the battle was finally over. The bill was passed. The champagne was popped. Shirt collars were unbuttoned.

It was, as Prime Minister Malcolm Turnbull put it, a ‘great day’ for the Coalition. Because that day marked a win for working families across Australia.

The paper has been signed. It’s a done deal.

Bill Shorten’s protests led to nothing. Perhaps now he’ll fall silent…about personal income tax, at least.

There are other, older tax cuts that Labor can spit the dummy over. Now they’re targeting successful businesses, instead.

Shorten picking favourites

Today, Shorten confirmed that Labor will make significant changes to tax cut agreements if they are elected.

As of 1 July, businesses with a turnover of $50 million or less are relieved by helpful tax cuts. Businesses within that turnover threshold have a tax rate of 27.5% instead of the standard 30%.

That’s giving a helping hand to more than 98% of Australian businesses.

Labor instead propose that tax cuts be capped at a $2 million turnover, because that’s where most of our businesses fall.

We think that small business can do with all the assistance they can get,’ Shorten argues.

But while this is good news for smaller businesses, it comes with bad news for the rest. Shorten will repeal the tax cuts assigned to the $10–50 million turnover bracket.

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But what’s his motivation?

You’d almost think that Shorten doesn’t like to reward the successful:

I just don’t agree with Mr Turnbull that the four big banks deserve $17 billion in tax cut over the next 10 years.

He has a point. I mean, what have they done for us? A measly $31 billion in profit for the Australian economy, and for shareholders. Pathetic.

Shorten concludes with:

It is all down to values. He [Turnbull] is for the top end of town. He’s made it clear how he feels. I am for education and health funding.

So Shorten has also made it clear, then, that he’s not for the 20,000 medium-sized businesses and 1.5 million workers that will suffer under Labor’s plan.

Treasurer Scott Morrison commented:

Labor has no plans to grow the economy, just plans to suffocate it with higher taxes, destroying jobs and stealing pay rises.

Who is on board with this?

By the looks of it, not many, outside of the Labor party.

Pauline Hanson, Cory Bernardi and the Centre Alliance’s Stirling Griff and Rex Patrick have already revealed their distaste for the idea. And they’re likely to hold their power over the next electoral term.

Nope, not a chance, we would be dead against it,’ said Senator Griff, for himself and on behalf of Senator Patrick.

At least some of the #AusPol are with it.

But as long as the Coalition is in power, this policy will remain nothing more than promises. On that note, let’s end with another comment from Morrison:

Bill Shorten has confirmed yet another giant, job-destroying tax on Aus biz & the economy. Not only has Labor committed to ripping our personal income tax cut away from 9m Aussies, they’ll now hit tens of thousands of businesses that employ 1.5m Aussies with high taxes.

Imogen van der Meer

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The Australian Tribune Editorial

The Australian Tribune Editorial

The Australian Tribune is an unorthodox news service. Your Australian Tribune editorial team deliver the unfiltered stories that could impact your daily life — political and economic stories you’re unlikely to get anywhere else. And we’re not afraid to step on some toes to do it. We are honest, conservative and never dull. We are an independent service, meaning we don’t answer to shareholders or outside advertisers. This helps avoid conflicts of interest that inhibit mainstream sources, which keeps our voice independent. The Australian Tribune is owned and operated by Port Phillip Publishing.
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