Australian Politics Forum - Abbott would cut Company tax rate by 1.5%

Lobo

Gold Member

Offline

Australian Politics

Posts: 7407
Sydney
Gender: male

Re: Abbott would cut Company tax rate by 1.5%
Reply #45 - Aug 7^th, 2013 at 7:50pm

longweekend58 wrote on Aug 7^th, 2013 at 4:26pm:

Lobo wrote on Aug 7^th, 2013 at 2:53pm:

longweekend58 wrote on Aug 7^th, 2013 at 9:53am:

philperth2010 wrote on Aug 7^th, 2013 at 7:19am:

Cutting company tax by 1.5% will cost $5 billion PA in lost revenue.....The 1.5% tax increase on large companies will be used to pay for most of Abbott's PPL scheme with the rest coming from consolidated revenue.....With no other new taxes or charges how will Abbott fund this thought bubble???

Huh

reduced taxes increases economic activity - that's a proven. this could end up paying for itself in ironically increased tax revenues and higher employment and income taxes.

this ladies and gentlemen is what a REAL economic stimulus is all about - not throwing money around and hoping some will land in good places.

As a company owner, longy, how many new employees are you going to hire with your 1.5% tax break?

as a small business (micro actually) I wont employ anyone else at all but the point is that every but helps. The money I will save will go to buying extra equipment which will help save other jobs.

So the 1.5%, if not reinvested, boosts your profit margin.

Back to top

"What's in store for me in the direction I don't take?"-Jack Kerouac.

IP Logged

Lobo

Gold Member

Offline

Australian Politics

Posts: 7407
Sydney
Gender: male

Re: Abbott would cut Company tax rate by 1.5%
Reply #46 - Aug 7^th, 2013 at 7:53pm

Quote:

A high turnover, low profit business could exceed $5M and be liable but a low turnover high-profit group may not. A Subway Franchise might make $5M turnover (granted prob not!) but have a profit of a mere $50K while a small consultancy might have a revenue of $2M and a profit of $1.9M.

Maybe you need to send your figures to Party HQ.
After all, this is their idea.....

Back to top

"What's in store for me in the direction I don't take?"-Jack Kerouac.

IP Logged

Lobo Gold Member Offline Australian Politics Posts: 7407 Sydney Gender:	Re: Abbott would cut Company tax rate by 1.5% Reply #47 - Aug 7^th, 2013 at 8:07pm There you go, longy. The wording has changed slightly since this AM's version, but the gist is the same. http://www.theaustralian.com.au/national-affairs/election-2013/coalition-pressed...
Back to top	"What's in store for me in the direction I don't take?"-Jack Kerouac. IP Logged

longweekend58

Gold Member

Offline

Australian Politics

Posts: 45675
Gender: male

Re: Abbott would cut Company tax rate by 1.5%
Reply #48 - Aug 8^th, 2013 at 8:45am

Lobo wrote on Aug 7^th, 2013 at 7:50pm:

longweekend58 wrote on Aug 7^th, 2013 at 4:26pm:

Lobo wrote on Aug 7^th, 2013 at 2:53pm:

longweekend58 wrote on Aug 7^th, 2013 at 9:53am:

philperth2010 wrote on Aug 7^th, 2013 at 7:19am:

Cutting company tax by 1.5% will cost $5 billion PA in lost revenue.....The 1.5% tax increase on large companies will be used to pay for most of Abbott's PPL scheme with the rest coming from consolidated revenue.....With no other new taxes or charges how will Abbott fund this thought bubble???

Huh

reduced taxes increases economic activity - that's a proven. this could end up paying for itself in ironically increased tax revenues and higher employment and income taxes.

this ladies and gentlemen is what a REAL economic stimulus is all about - not throwing money around and hoping some will land in good places.

As a company owner, longy, how many new employees are you going to hire with your 1.5% tax break?

as a small business (micro actually) I wont employ anyone else at all but the point is that every but helps. The money I will save will go to buying extra equipment which will help save other jobs.

So the 1.5%, if not reinvested, boosts your profit margin.

and how evil is that... imagine a policy that might actually.. gasp... IMPROVE business profitability??? Might those companies (oh the horror) invest in increased capacity or might they pass it on the shareholders to spend in the economy?

what an awful awful prospect!

Back to top

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..."

IP Logged

Lobo

Gold Member

Offline

Australian Politics

Posts: 7407
Sydney
Gender: male

Re: Abbott would cut Company tax rate by 1.5%
Reply #49 - Aug 8^th, 2013 at 3:02pm

longweekend58 wrote on Aug 8^th, 2013 at 8:45am:

Lobo wrote on Aug 7^th, 2013 at 7:50pm:

longweekend58 wrote on Aug 7^th, 2013 at 4:26pm:

Lobo wrote on Aug 7^th, 2013 at 2:53pm:

longweekend58 wrote on Aug 7^th, 2013 at 9:53am:

philperth2010 wrote on Aug 7^th, 2013 at 7:19am:

Cutting company tax by 1.5% will cost $5 billion PA in lost revenue.....The 1.5% tax increase on large companies will be used to pay for most of Abbott's PPL scheme with the rest coming from consolidated revenue.....With no other new taxes or charges how will Abbott fund this thought bubble???

Huh

reduced taxes increases economic activity - that's a proven. this could end up paying for itself in ironically increased tax revenues and higher employment and income taxes.

this ladies and gentlemen is what a REAL economic stimulus is all about - not throwing money around and hoping some will land in good places.

As a company owner, longy, how many new employees are you going to hire with your 1.5% tax break?

as a small business (micro actually) I wont employ anyone else at all but the point is that every but helps. The money I will save will go to buying extra equipment which will help save other jobs.

So the 1.5%, if not reinvested, boosts your profit margin.

and how evil is that... imagine a policy that might actually.. gasp... IMPROVE business profitability??? Might those companies (oh the horror) invest in increased capacity or might they pass it on the shareholders to spend in the economy?

what an awful awful prospect!

Never said it was, but the supposed objective of the 1.5% company tax reduction is to boost employment...

Now, let's face it, revenue neutral combined with revenue negative leaves us with zilch to fund the PPL.

If this policy of Abbott's is a sh!tter, and you have agreed that it is, how many more of his policies are as well???

Quote:

Granted however I think the revenue figure is the wrong way to go. A high turnover, low profit business could exceed $5M and be liable but a low turnover high-profit group may not. A Subway Franchise might make $5M turnover (granted prob not!) but have a profit of a mere $50K while a small consultancy might have a revenue of $2M and a profit of $1.9M.

longy.

Back to top

"What's in store for me in the direction I don't take?"-Jack Kerouac.

IP Logged

Dnarever Gold Member Offline Australian Politics Posts: 59347 Here Gender:	Re: Abbott would cut Company tax rate by 1.5% Reply #50 - Aug 8^th, 2013 at 5:41pm Another $5 Billon of unfunded spending is another $5Billion of debt borrowed to give business a bonus.
Back to top	IP Logged

Verge Gold Member Offline Australian Politics Posts: 6329 Gender:	Re: Abbott would cut Company tax rate by 1.5% Reply #51 - Aug 8^th, 2013 at 6:35pm The tax cut is actually bad for shareholders. It will mean their shareholders end up with less franking credits thus reducing the benefit of their dividend by 1.5%. So it has no effect on big business but shareholders miss out.
Back to top	And why not, if you will permit me; why shouldn’t I, if you will permit me; spend my first week as prime minister, should that happen, on this, on your, country - Abbott with the Garma People Aug 13 IP Logged