Thursday, October 06, 2011

We Collect, You Pay.

Proposed by the government is a Super-Tax on large mining companies.
This tax will (cough) "pay for" the retirement savings of the working population.


The govt will pull a swifty by passing a law forcing employers to pay an extra 3% byond each employee's wages into a retirement superannuation fund. (Currently 9%, will increase to 12%.)
Employers who happen to be a company will have a reduction in income tax of 1%.

Govt receives big tax $$ from mining co's.
Employers pay an extra 3% of payroll.

Why is no journalist asking the obvious question of the government?

Yes, there will be a reduction in company tax of 1%.

Employers who are not companies (there are many) get nothing, but have to pay 3% extra of payroll.

Government ministers (& apologists) are lying through their teeth when they say that a big tax on profitable mining companies will fund superannuation increases. Or else they are too stupid to understand how it will work.

Employers who are companies get a tax cut of 1% of taxable profit, but pay an extra 3% of payroll.
For a significant number of employers (if not most) payroll is up to 5 times greater than taxable profit.
We'll choose an example of (say) a pub. This pub is owned by a company and makes a taxable profit of (say) $100,000. Thus the tax cut will "give" this pub $1,000.
The payroll for this pub is $400,000. Thus the extra superannuation payment is $12,000

Costs go up by $12,000
"Paid for" by $1,000 less income tax.

Government (& apologists) are either lying or stupid if they claim this big-feller mining tax will pay for superannation.

Lying or stupid. There is no third option.


silverwolf1954 said...

i think you are grossly wrong.....

they are neither lying or stupid....

they are deceitful and lying and stupid and idiots....

there is one other option....

they are enemies of australia....

Skeeter said...

A bit like the myth of state governments "subsidising" the feed-in tarrif for domestic solar generators.
The electricity retailers are paying the subsidised feed-in rates from the extra charges they have made over recent years on all their customers' power bills.
So, if you don't have solar panels on your roof, just remember this next next time you turn on a light switch — you, not the gummint, are paying more, so owners of solar generators can pay less.

JeffS said...

There is a third option: they are stupid liars.