We know better than you so shut up and pay up

From today’s AFR:

Shadow treasurer Chris Bowen said he was concerned about risks to Australia from the slowing world economy, so Labor must implement all its $200 billion-plus in pledged tax rises to arm the federal government with a bigger fiscal “buffer” to counteract any global downturn.

That’s right.  The Labor Party wants to take money out of the economy so that they can put money into the economy.

It sounds sensible given that the Liberal Party has announced that next year’s budget will be in surplus, all off the back of increased tax revenue, but care must be exercised in the economy because house hold budgets are under pressure.

If only households could have taxing powers, powers to take money from others by forces, so that they can continue to spend in the manner they have grown comfortable with.

Perhaps the risks to Australia are not from the slowing world economy but rather the accelerating government taxing and spending.

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27 Responses to We know better than you so shut up and pay up

  1. Rohan

    So please remind me; how do I get my hard earned offshore so these lying Marxist thieves can’t access it again?

  2. Rohan

    FMD, these thieves are wanting to strip an additional 14-15% of GDP out of the economy as additional taxes. So this will mean the government tax receipts will be about 47% GDP (based on the 2017 figures for GPD and tax receipts I could google).

    Where the fuck are Corman and Frydemballs? All I hear is crickets.

  3. Alex Davidson

    Our only hope is that one day the truth will finally dawn on the masses that the political class – government at all levels, their mates and cronies, and most of the legal profession – is in fact by far the largest and most destructive organised crime syndicate in the country. Their thievery far outstrips that achieved by those they deem criminals. Not only do they use force to help themselves to ever greater amounts of other people’s wealth, they now demand a “culture of compliance”, whereby we must obey ever more petty rules and regulations or else face even more draconian seizures of our wealth and restrictions on our freedom.

    How can individuals be expected to live by the precept “Thou shalt not steal”, when right before their eyes the political class indulges in it on a grand scale, without a shred of guilt, as if it is the right thing to do?

    What we live in is nothing like what a free society should be. It’s serfdom.

  4. duncanm

    “I’m worried about the slowing economy – so I’ll put some more brakes on it with tax rises.”

    You know it makes sense

  5. Old School Conservative

    Another warning from labor to get out of Australian shares.
    Have they shorted the market?

  6. Ƶĩppʯ (ȊꞪꞨV)

    Marxists detest prosperity, they are only comfortable in poverty and misery.

  7. mh

    Shadow treasurer Chris Bowen said he was concerned about risks to Australia from the slowing world economy, so Labor must implement all its $200 billion-plus in pledged tax rises to arm the federal government with a bigger fiscal “buffer” to counteract any global downturn.

    Taking wealth from the productive in order to grow government. That sounds like a winner!

  8. Dr Fred Lenin

    Looks like Venezuela has competiton in the Stupid Stakes,narxist economics 101 “how to make a rich thecountry into an impoverished fourth world shit heap “ ,by Karol Marks .
    Must be teaching it at our 5643 “youniversidies “. The bible of world socialism .

  9. Speedbox

    Within a few short months, Bill Shorten will almost certainly be our PM. The Unions, NGO’s and assorted spivs are salivating at the prospect of their ascendancy. Numerous new taxes and spending programs have already been revealed. Times almost up. You must act now to protect your wealth.

  10. Dr Faustus

    Our only hope is that one day the truth will finally dawn on the masses that the political class – government at all levels, their mates and cronies, and most of the legal profession – is in fact by far the largest and most destructive organised crime syndicate in the country.

    Unfortunately for that hope more than half of the masses are receiving payoffs from the political class. That particular truth will remain hidden until the receivers are called in.

  11. Robbo

    If you want the money you have earned to do the best for you then the last place it should go is to the government. It doesn’t matter what Party is in power because you can’t trust any of them, particularly when it comes to taxation.

  12. Bruce in WA

    Shadow treasurer Chris Bowen said he was concerned about risks to Australia from the slowing world economy, so Labor must implement all its $200 billion-plus in pledged tax rises to arm the federal government with a bigger fiscal “buffer” to counteract any global downturn.

    Bowen: Comrades, I’ve worked out how to get our hands on a lazy $2 bill of the peasants’ money they should never have had in the first place.

    Caucus: Tell us, oh leader, we beseech thee.

    Bowen: We tell the sheep we’re worried about a global downturn, which would mean they have less wealth. So, to counteract that, we’ll need some extra dosh in the way of taxes … which we’ll take from them.

    Caucus: Brilliant, oh leader. Truly thou art the economic messiah. But what about the wukkas?

    Bowen: Simple, comrades … we’ll simply tell them it’s only the rich who’ll be taxed. They’ll love it. We’ll just “forget” to tell them we’re redefining rich as anything over $25k a year!

    Caucus: All praise the leader!

    PS: The difference between a cactus and the caucus? With a cactus, all the pricks are on the outside!

  13. Mother Lode

    The covetous buggers think that Australia does well if the government balances its books – which they will achieve by making actual Australians poorer.

  14. Fibro

    Perhaps the risks to Australia are not from the slowing world economy but rather the accelerating government taxing and spending.

    Perhaps? Insert Already

  15. Mother Lode

    Woops. Wrong thread.

  16. You have heard of Austrian economics.
    And its antithesis Keynesian economics.
    Well this is Swan-Bonehead econo9mics.

  17. MACK

    They’ve seen Danny Andrews blow the Victorian budget to create jobs for unionists, and then win a landslide victory with no media criticism. Why wouln’t they do the same Federally?

  18. J.H.

    It’s just crazy talk by Labor as usual… They just don’t get the simple fact that tax money is money that would be working in the economy all by itself, if the Government didn’t steal it for their own purposes. Tax money isn’t created by Governments… It’s stolen by Governments from the free enterprise economy and then used utterly inefficiently by them to create the Governments economy.

    They should just take 100 percent of the money and be done with it…. What’s the point in taking just some of it? We can all go back to being peasants ruled over by an elite class again… Heck, we’ll even vote ourselves there….. sigh.

  19. OldOzzie

    Threaten Actions have Consequences

    Brickworks joins special dividend rush to beat Labor franking credit change


    The trickle of listed investment companies paying special dividends to shareholders to beat Labor’s franking credit changes is threatening to become a flood.

    Following in the footsteps of companies like Australian Foundation Investment Co, the $1.1 billion Brickworks Investment Company issued a surprise dividend on Wednesday morning and vowing to pay another one later this year.

    Brickworks Investment, which is part of the Washington H. Soul Pattinson investment empire, has also dumped $15 million in shares of BHP to capture the value of franked dividends on offer from the mining company, although it then bought back some shares in the company.

    It is the latest listed equities fund to re-engineer its share portfolio in the face of the looming changes to dividend franking proposed by the ALP, as its investment managers scramble to protect the value of dividends for their mostly elderly, retired shareholders.

    In the last week the nation’s biggest listed investment company Australian Foundation Investment Co dumped $120 million worth of shares in BHP and Rio Tinto and paid an unscheduled dividend to beat the stripping of cash refunds for excess dividend imputation credits by an incoming ALP government.

    It has been joined by other investment companies Mirrabooka and Amcil that have put dividends into the hands of its shareholders to ensure the franking credits are passed on before their value is greatly diminished by the ALP scheme.

    Brickworks Investment, which has a portfolio of blue chip stocks worth more than $1.1 billion, unveiled a fully franked interim dividend of 3.625 cents per share, as well as a special dividend of 1.5 cents per share, both payable on February 28.

    Brickworks Investment also intends to pay another special dividend of at least 1 cent per share at the end of the financial year as it shifts $16.75 million of imputation credits on its books to beat any ALP policy that could come into effect if the party wins the federal election.

    “In recent months we have been overwhelmed by the level of angst in the investment community regarding Labor’s proposal to eliminate cash refunds of excess franking credits,’’ Brickworks Investment said as it posted a 104 per cent rise in December half profit to $47.09 million.

    Brickworks Investment portfolio manager Tom Millner told The Australian the special dividends were directly linked to the threat to franking credits by the ALP. He said his shareholders were greatly concerned about the policy.

    “It is a big concern,” he said.

    “We don’t exactly know how much of our shareholder base it effects, but we are paying a fully franked 1.5 cents per share dividend and this shows we are concerned about it. And there is more to come because we have this concern,’’ Mr Millner said.

    He described the ALP policy as a poor one.

    ‘’They (the ALP) are not listening. Maybe the voters will tell them no one likes it. It will affect a lot of people nationally and it’s not a good policy, simple as that.”

    A Shorten Labor Government has vowed to make the tax system fairer by closing down a concession that gives cash refunds for excess dividend imputation credits. Closing down this concession will save the budget $11.4bn over the forward estimates from 2018-19, and improve the budget bottom line by $59bn over the medium term, shadow Treasurer Chris Bowen has claimed.

    But even the threat of the policy has been enough to force the hand of investment managers who have begun to sell down shares and pull the trigger on special dividends to ensure the value of franking credits are protected and handed over to shareholders.

    AFIC chief executive Mark Freeman, who is also the CEO of Amcil and Mirrabooka, revealed this week the fund had sold down almost half its stake in Rio Tinto and 3 per cent of its holding in BHP to pass on the franking credits to its shareholders as soon as possible.

    He told The Australian that the feedback from his 130,000 shareholders, who were mostly elderly retirees, that the ALP proposed changes to franking credits would hurt them financially.

    “This is going to hurt a lot of people who are saying ‘I’m not rich, I’m not wealthy and why am I being forced to go on a higher tax bracket through this?’’

  20. John64

    Turtle Head Bowen channelling his inner Goose Swansteen.

  21. flyingduk

    So please remind me; how do I get my hard earned offshore so these lying Marxist thieves can’t access it again?

    Guns, Gold and Bitcoin…

  22. iamok

    Redistribution 101. Simple

  23. Up The Workers!

    Couldn’t Labor(sic) get all the loot from George Soros?

    He funds everything else.

  24. DaveR

    Abraham Lincoln quotes:

    You cannot strengthen the weak by weakening the strong. You cannot help the wage-earner by pulling down the wage-payer. You cannot help the poor by destroying the rich.

  25. DaveR

    Cant help laughing every time I hear Bowen and Shorten say the payment of unused franking credits as cash “costs” the government x billion per year.

    Correct me if I am wrong, but arnt dividends paid out of after tax profits, and isnt this a pass through of taxation already paid to the shareholder?

    In what world is Bowen and comrades not talking about levying a double taxation on that part of a dividend payout?

    And it hits the poorest investors most, above $100k pa dividend income all franking credits are used.

    Morrison where are you??? Such any easy anti-Labor major campaign theme.

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