An Independent Queensland Regional & Rural
(Cairns... Far North Queensland)
'Financial Transaction Tax (FTT)'
(National Debit Tax Concept)
"For 44 years, Multi-Nationals have
paid little or no tax!"
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.
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.
Written and Authorised by Selwyn Johnston, Cairns FNQ 4870