Money is tight because mega-rich dodge tax

The Liberal Party's lop-sided insistence on cutting expenditure puts in jeopardy elements of the social wage the Australian people have voted for in the form of Medicare, pensions, public schools, public TAFE, public universities, public hospitals, public broadcasters, disability scheme, family assistance, childcare, Aboriginal support and programs.

Additional matters require new government initiative and support including: a well-resourced taxation office, ACCC, CSIRO, a well-resourced and reconstituted Climate Council, national ICAC, dental and specialist bulk billing, a multi-faceted national youth plan, a manifesto of essentials for pensioners, return of specific parcels of Aboriginal land, the desperate needs of the homeless, neglect and mismanagement of ADF personnel and a fast NBN.

The government also turns a blind eye to the obvious alternative strategy of collecting taxes at their current rate from all those who derive an income from Australia including the mega rich, Australian companies and multinational companies.

If the Australian Parliament decided to adopt revenue repair as priority one then many of the problems in Australian politics and society could be fixed.

Strategies could include criminalising the use of offshore tax escapes.

Make all multinationals pay 30 per cent tax on all profits made from business conducted in Australia.

The estimated revenue, according to Rozvany, would be $50 billion per year.

Oxfam, using a fraction of the data, has already identified revenue repair to the tune of $6 billion per year.

Require the 30 per cent of Australian companies that pay little or no tax to pay a three per cent fee to operate in Australia.

This will produce, according to the ATO, an estimated revenue of $12 billion per year with many more billions if increased to 4 per cent or 5 per cent.

For people with annual taxable income over 150 per cent of the average ($130,000), replace the concessional 15 per cent concessional super tax rate with the marginal tax rate at an estimated revenue increase of $29 billion per year.

Those earning 150 per cent or more over the average should not be given access to negative gearing at an estimated revenue increase of $5 billion per year.

Remove their 50 per cent capital gains tax exemption at an estimated revenue increase of a minimum of $6 billion per year.

Remove all subsidies to fossil fuel companies at an estimated revenue increase of $5.5 billion per year.

Other areas that require further research would include the use of family and company trusts to escape tax and the application of death duties on all but the family home.

The Turnbull Government is constantly telling us that our responsible social wage is not affordable, that there is no money to pay for it.

The main reason why money is tight is because the mega rich, many Australian companies and multinationals are permitted to dodge paying tax.

Email, 3 Aug 2016

Van Davy, Pearl Beach