Does This Look Like a Government That Had ALL it Could Eat?

Sinclair Davidson brings our attention to these deeply troubling statements from our supposedly conservative, center-right treasurer:

Mr Morrison emphasises that the Coalition understands that large businesses employ millions of Australians, which is why it took its enterprise tax plan to Parliament and secured “far more than our critics believed we would”.

[Marcus: this is code for, ‘they look like they might have some spare money and we want more of it because we’ve blown what we previously took’].

“This task cannot be pursued by the government in isolation.

“Business has a critical role to play in demonstrating to the Australian people that as their business grows, their employees will benefit. And that job starts with the conversations they have in their own businesses.”

[Marcus: in isolation, this sounds sensible, until you realise he’s actually asking for business to get on board with his tax grab and threaten the jobs of those same employees].

In the past year, we’ve continued to toughen up on multinationals. Australia now has some of the toughest laws in the world to combat multinational tax avoidance.

[Marcus: oh yeah, that’ll encourage jobs and growth – PS: tax avoidance is perfectly legal].

We’re making sure multinationals pay their fair share of tax so that Australian citizens get the tax from the profits earned in Australia, from Australian consumers, that is needed to fund vital infrastructure and services.

[Marcus: are we listening to a supposedly Liberal treasurer or Wayne Swan here?].

The Australian Taxation Office has today confirmed that measures including our Multinational Tax Avoidance Legislation will enable us to claw back around $2.9 billion in additional tax liabilities this year. The Government has also succeeded in legislating our Diverted Profits Tax, further preventing multinationals from shifting profits made in Australia offshore to avoid paying tax.

[Marcus: they’ll shift their operations and employment off-shore too you imbecile].

The Diverted Profits Tax commences on 1 July, and is conservatively expected to raise $100 million in revenue a year from 2018–19.

[Marcus: in other words, about the same as the mining tax. Any time you can raise almost no tax while upsetting major enterprises and industries and threatening local jobs, then you absolutely must do it].

This comes on top of other moves to set up a Tax Avoidance Taskforce, increase penalties, and strengthen whistleblower protections which are expected to raise almost $4 billion over the budget and forward estimates.

[Marcus: never fear, the Tax-Waffen will ensure that things remain every bit as insipid as they currently are].

Why is there even the slightest discussion being had about raising the government’s level of revenue (currently at a very healthy 24% of GDP and rising to 25% of GDP) when it’s the utterly negligent level of spending (currently at a near-record 25.8% of GDP) that desperately needs to be addressed?

(For more of what I’ve written on the federal budget, go here).

Budget 2016-17

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35 Responses to Does This Look Like a Government That Had ALL it Could Eat?

  1. Senile Old Guy

    Why is there even the slightest discussion being had about raising the government’s level of revenue (currently at a very healthy 24% of GDP and rising to 25% of GDP) when it’s the utterly negligent level of spending (currently at a near-record 25.8% of GDP) that desperately needs to be addressed?

    Thank you. The ALP is the party of taxing and spending. The LNP should not be doing this but the LNP is now indistinguishable from the ALP.

  2. Megan

    The Imbeciles rule. And we must suffer the consequences.

  3. Does that include all levels of government or is it just federal?

  4. Marcus

    Just federal mate. Adding in the states makes things even more depressing.

  5. Neil

    The LNP should not be doing this but the LNP is now indistinguishable from the ALP.

    The Coalition cannot do anything because they know whatever spending cuts they do will be blocked by the Senate

  6. H B Bear

    Adding in the states makes things even more depressing.

    WA heading for $40bn in debt, Queensland $90bn and counting. We are governed by a cabal of Goosesteens and no-one seems to give a rats arse. There is no political downside to it at all. Why would you do anything differently?

  7. Senile Old Guy

    The LNP should not be doing this but the LNP is now indistinguishable from the ALP.

    The Coalition cannot do anything because they know whatever spending cuts they do will be blocked by the Senate.

    That’s a cop-out and a recipe for doing nothing at all. They could try. And, if blocked, go on about it.

  8. Neil

    That’s a cop-out and a recipe for doing nothing at all. They could try. And, if blocked, go on about it.

    They did try and were blocked in 2014. I guess they gave up. Coalition MPs are humans not super saints who will die for what they believe.

  9. John constantine

    Their incoming shorten foundation government will gallop to their first social justice trillion so fast, they will be flat out printing more money to get away with it.

  10. zyconoclast

    They did try and were blocked in 2014. I guess they gave up. Coalition MPs are humans not super saints who will die for what they believe.

    Agree with your first sentence.
    Agree with your second sentence
    Your third sentence is half right. They are human. The next bit is wrong because they are doing what the believe in right now.

  11. Neil

    This is what it took to get the budget back into surplus in 1996. It took a Parliament House riot.How many people who post on this blog would have the courage of Howard

  12. Transfer of asset ownership under force or threat of force is extortion.
    Any tax is a transfer of asset ownership under force or threat of force.
    Is it any wonder that this country finds itself in the shit when the citizenry set up an elite group with the power to steal, extort, and cover up at will?

  13. john constantine

    If only howard had had the guts to not crumple the first time his wife nagged him to fundementally transform australia into a disarmed,eternally socialist, castrated welfare dependant hellhole.

  14. rickw

    If only howard had had the guts to not crumple the first time his wife nagged him to fundementally transform australia into a disarmed,eternally socialist, castrated welfare dependant hellhole.

    Howard is a weak minded piece of shit.

  15. Neil

    Howard is a weak minded piece of shit.

    Why don’t you enter Parliament and show us how it is done.

  16. val majkus

    tax minimisation is legal, tax avoidance is illegal – flashback https://www.youtube.com/watch?v=LnwYoOeWZGA

  17. H B Bear

    If only howard had had the guts to not crumple the first time his wife nagged him to fundementally transform australia into a disarmed,eternally socialist, castrated welfare dependant hellhole.

    Not sure how you would go about it but I would love to know exactly what influence Hyacinth Bucket had over Howard during his years in government. I’m sure she was central to his staying on after Downer and others tapped him on the shoulder once KRudd appeared and got the Liars up and off the canvas where they had been for years, coming after years of “I’ll stay on as leader as long as the Liberal Party want me to”.

  18. Dr Fred Lenin

    The next election is going to be verrry eenteresting ? The ruddbull branch of the national green laboral party is totally discredited and is fooling no o e but themselves . The left left left of shortass and the druggies wife is fooling no one ,these are totally discredited crooks and will surely implode as proto communusts always do ,witness the krudster and the lying giliard . The greens are mad communists bent on destroying civilisation in favour of the unelected u.n. Commnuists and their . fascist EU comrades , one nation seems to be disorganised policy changing rabble like the old builders laborours union. ,lowensteens libertarians are a branch of ruddbulls mob .the choice is abysmal perhaps it will be a chance for a real peoples party will arise from the filth and muck of todays politics ,God knows we deserve it after the shit we have had since the foul krud was elected and tge two bitches who followed him giliard and turnbull .

  19. Jannie

    Its going to have to get a lot worse before it starts to get better.

  20. Bruce

    We are talking about POLITICIANS here.

    The catch is that the “talking heads” / “duly elected representative of the people”, are generally enthusiastic amateurs, well-meaning or otherwise.

    HOWEVER, much of what they say and do, is DIRECTLY attributable to their “loyal” and “impartial” public “servants”.

    Let’s hope we do NOT get the full “Westminster” system here: Under the “original”, if a minister refuses the “advice” of a “permanent” department head, they seem to be obliged to resign, so the next dumb bunny who accepts the advice, or complete legislative package, can take the blame for whatever catastrophic madness the bureaucrats want to implement.

  21. if a minister refuses the “advice” of a “permanent” department head,
    they seem to be obliged to resign

    Codswallop.

  22. Squirrel

    That graph is a reminder, amongst other things, that growth in federal government revenue which is comfortably in excess of CPI is still not enough to pay for all the promises, and for the longstanding programs which are growing at quite unsustainable rates.

  23. rickw

    Why don’t you enter Parliament and show us how it is done.

    Not yet, I haven’t finished working in the private sector.

  24. Neil

    Not yet, I haven’t finished working in the private sector.

    Under Howard unemployment went from 8% to 4%. Debt went from 18% of GDP to zero in 2005 and to minus 3.8% of GDP in 2007.

    If you think you could do a better job go for it.

  25. Sorry guys the CFMEU have it in the bag now, ‘batten down the hatches’. Lord Wentworth is a much better communicator than Hockey and Abbott, but the performance never matched the promise. They have to convince that cohort of voters that need the handouts but know what damage they will ultimately cause and those who would support the Labor Party of the 1980’s but fear the damage they know the CFMEU and associated Marxists are capable of.

  26. Neil;

    I guess they gave up

    So they’re sitting on their arses refusing to do their jobs because “It’s too bloody hard?”
    Bastards.

  27. Tel

    A good fraction of Australians speak Greek already, so luckily those people can get the word out once we start banging up the IMF for loans and that Super Finance Minister guy with the sexy shirts and the leather jacket might be worth booking, cos we will need him for sure. Even better than Wayne Swan they say.

  28. Boambee John

    SOG

    There is a lot they could do in administrative expenses (travel, meetings etc).

    The actual savings would be relatively small but could be made to impact in areas Coalition voters don’t care much about.

    Imagine an HRC with no travel funds or an ABC unable to send journolists overseas)

  29. Boambee John

    This will affect public servants mostly, with some flow on to pollies.

    After a couple of months pain ask BS whether he is yet prepared to be reasonable. If not then continue.

  30. Ragu

    They have to convince that cohort of voters that need the handouts

    Nobody needs a handout. What they need is more of their own money.

    Back to the post;

    “Business has a critical role to play in demonstrating to the Australian people that as their business grows, their employees will benefit. And that job starts with the conversations they have in their own businesses.”

    A true what-the-fuck moment there.

    As business grows, they get new employees and pay them according to the market rate. Seems fair to me.

    As far as ‘conversations’ go, I would think 99.99% of businesses are concentrating on paying bills and keeping people turning up on Monday.

    Morrison has well and truly left the reservation.

  31. Ragu

    Has Rousseau been required reading in the liberal party room lately?

  32. .

    This is why we need either term limits or sortition. Why is why the “republic” debate is so sad, it only discusses one mostly superficial aspect of potential reform.

  33. .

    What’s the betting market will say the next budget blowout will be? Perilously close to another election. This and the next one could hamper Australia for generations.

  34. Bruce in WA

    Under Howard unemployment went from 8% to 4%. Debt went from 18% of GDP to zero in 2005 and to minus 3.8% of GDP in 2007.

    Perhaps. But when he dies, I’m still going to piss on his grave.

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