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TAXATION
- THE ISSUE
The key to all industry
and business is the reform of a taxation system that has become unworkable and
inefficient. The GST only exasperates the old taxation situation and has become
a disincentive for employment, and a burden upon initiative.
There
must be an absolute commitment to equality in the taxation system and this
includes multi-national and foreign investment companies.
We
MUST investigate the possible introduction of a Financial Transaction Tax (FTT)
system as a replacement for existing taxes. A Financial Transaction Tax,
compared to the GST, is simple to understand, easy to administer and collect,
and highly efficient at eliminating tax avoidance by foreign companies and large
companies.
As
the revenue raising ability of the FTT becomes clearer, it will be
possible to eliminate existing taxes in a pre-determined order beginning with
the most inefficient or obnoxious taxes first.
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ABOLISH- The International Tax (Agreements) Act 1953
In 1953, the International Tax
(Agreements) Act 1953 was introduced. This Act has allowed multi-nationals to pay little
or no tax on their profits and permitted them to send an estimated $200 billion in
tax-free profits out of Australia - annually.
This tax advantage has enabled the multi-nationals to
systematically take-over numerous Australian companies, leaving the Australia government
with insufficient tax dollars to maintain essential services, thus forcing the government
to sell taxpayer assets, (i.e. Qantas, Commonwealth Bank, Telstra, Energy and Water
resources and who knows what next!) to cover the losses from taxes it had previously
collected from the now acquired companies. This in turn has assisted with the escalation
of unemployment.
In the January
1997 mini-budget review, the Federal
Treasurer, Peter Costello stated that there was an estimated $1.6 billion shortfall
in total company tax receipts in the 1996-97 budget.
The Australian Taxation Office revealed that as at the end
of January (1997) small businesses were running $639 million below Budget tax
estimates.
Mr Costello needs look no further than foreign ownership to
overcome these problems...
The International Tax
Agreement Act (1953)... MUST
be ABOLISHED!
It is essential that all politicians give an irrevocable
undertaking to their constituents that they will, as a matter of NATIONAL priority,
introduce or support legislation to tax multi-national companies profit (the same as
Australian companies) before the profits leave Australia.
Assuming a taxation rate of 25% on the estimated $200
billion was applied, this would provide $50 billion annually, to assist in such areas as, Health, Education, Aged
Care, Job Creation and other community based essentials, as
well as eliminating the need to sell further taxpayer-owned assets.
For the elimination of ALL current
taxes, with there being replaced with ONE just, fair, non-discriminatory and equal
Taxation System for all, a Financial Transaction Tax
(FTT) system must be given serious
consideration.
