Gotti rent-seeking eats dust

Gotti has missed the boat:

If by chance Scott Morrison can unite his party then suddenly he has three “bread, butter and cake” issues outside of the morass of the energy/gender issues to fight an election.

I can’t see him winning, but the ALP’s outright rejection of the Liberals’ much-needed small business taxation appeal system gives him a chance that seemed impossible a week or two ago.

Add that to the retirement and pensioner’s tax and negative gearing and many millions of ordinary people are to be hit hard at a time of budget surplus.

Silly old fart. Or maybe cunning old fart, still massaging his dying readers.

The nation has long moved on. Negative gearing reform is now popular. Indeed it has played a key role in the success of Labor under Bill Shorten. Franking credits are more divisive but only because most folks don’t know what they do. If they did they would also support the reforms.

Business taxation is irrelevant to most and anything that makes it easier to shirk is badly on the nose.

The endless income recession has ensured that fairness is the number one hot button issue in the country now and Labor owns it thanks to the above reform agenda.

Comments

  1. Macron has just abandoned plans to raise fuel taxes after several weeks of riots.

    Fuel taxes make the plebs very angry – we saw that with Gillard’s carbon tax.

    Put in a mansion tax instead:

    Evanston passes ‘mansion tax’

    The measure passed yesterday with the support of just over 52 percent of voters.

    states like New York where the so-called mansion tax on homes of $1 million or more generated more than $400 million last year. Voters in Evanston, Ill. elected to impose a similar tax this past November, and Hawaii and New Jersey each charge higher taxes on pricier home sales.

    • We already have that. It’s called electricity prices.

      The window tax led to rickets.
      The chimney tax led to asphyxiations (presumably CO poisoning)

      However, it’s not all bad.

      The horsepower tax led to wildly divergent engine designs by regions.

      Which is why a carbon tax works.

  2. There’s some good in the other policies, but the franking credits proposal is a poorly considered mess that will leave the wealthy largely untouched, while impacting those much less so. Then again, perhaps I just hold onto outdated notions that policy should be robust and actually achieve its intended aim.

    • Slambo, the policy was sound until the world “greatest” treasurer (failure) changed a straight forward ruling.

      We are only getting back to the starting point.

      Anyone who has anywhere near a balanced investment portfolio tailored for risk has no problem with this move. Investors who chased franking credits only deserve their problem.

      • Well I suppose people can argue until they’re blue in the face as to whether the original policy was complete, equitable and logical or not. I choose to look at the outcomes, which under Labor’s proposal leave high income earners to reap the full benefits of the franking credits, while seeing that low income dividend recipients (not just elderly ones) pay a regressive flat 30 percent rate of tax on their dividends.
        Utter insanity and pointless complexity when all that is really needed is an adjustment to the zero percent tax rate of the relevant target group.
        But then that would have an equal impact across the board, including on Labor’s Industry super fund donors who walk away quite unscathed under the Labor plan. No altruism or improved fairness there.

      • Additionally, any justification based on portfolio composition is nonsense – that is entirely the business of the individual investor, be the decision sound or arguably not. Either way, nothing to do with sound policy formulation.

  3. Franking credits are more divisive but only because most folks don’t know what they do.

    Indeed. Shorten and Bowen wouldn’t have a hope if most folks understood franking credits (company tax imputed to shareholders).

Leave a reply

You must be logged in to post a comment. Log in now