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The Incredible Tax Hikes Keep Rolling In

August 2, 2013 2 comments

This is amazing. I thought I was already in a position of extreme disbelief when the fringe benefits tax and cigarettes tax increases were announced earlier this week. Now the banks are being targeted with an ill-conceived third world style levy and I can’t put into words how extreme my disbelief has become! This government is out of control with it’s addiction to spending and tax hikes. It goes without saying that the cost of the bank levy will be passed onto consumers. How else will it be funded? Does Labor think the money comes from some magical money tree? It’s the same whether it’s the carbon tax, mining tax or the myriad of other tax hikes Labor have already introduced. It adds to business costs, prices go up and we become uncompetitive in international markets.

Labor think they are better off by taking a bigger slice of the cake. But the cake keeps getting smaller and Labor’s slice keeps increasing disproportionately. This is third world politics. Short term tax revenue at the expense of long term economic prosperity. Eventually the cake becomes so small that the government needs to take all of it to get any money. Is Robert Mugabe an adviser for the Labor government? How about getting a bigger slice by making the cake bigger?

This tidal wave of tax hikes is extraordinary. It’s beyond belief. I was astonished by the announcement of the fringe benefits tax that will kill our already struggling automotive industry. It comes just weeks after Ford announced they are closing up shop in Australia because we are too expensive. It’s ridiculous. My eyebrows were already raised to their highest position with a look of complete disbelief. But the tax hikes keep rolling in and my eyebrows have no where to go.

This government’s answer to everything is more tax. It’s been the case since they first took office. It is not sustainable to continue in this manner. These sort of third world tax hikes eventually lead to less tax revenue as the penalized industries decline. Corrupt third world governments increase taxes wherever they see a cash grab and the result is the country remains third world. This is where Labor is taking us. We are in desperate need of a new government.

Good ol’ Rudd

In true Rudd style, the Labor government has announced changes to the fringe benefit tax rules for new vehicles, of course with no consultation with the industry. It’s yet another tax hike from Labor to cover their inability to manage the budget and is predicted to reduce sales of Australian built cars by 20% according to the Federal Chamber of Automotive Industries. Labor have already decimated vehicle manufacturing in Australia. Ford is closing it’s doors for good whilst Holden announces more layoffs every week. A further 20% reduction in sales will be the final nail in the coffin.

It’s incredible how Labor continue to invent tax hike after tax hike.

And the new taxes keep rolling in with news that Labor are considering increasing the tax on cigarettes, again in an effort to balance the budget. Labor have already increased the tax on cigarettes during their tenure. The price of a pack of cigarettes is already 60% tax and prices are among the highest in the world.

This is not surprising from Labor. They have a history of introducing short sighted taxes that penalize the Australian economy. After only a few years since the biggest economic boom in history, Labor has put the budget in such a poor position that they have been introducing a tax hike every 5 minutes since taking office. The tax hikes include carbon tax, mining tax, alcopops tax, cigarette tax increase, ethanol tax increase, increase in luxury car tax, taxing of overseas workers, flood tax, tax increase on company cars, LPG excise increase, cutting tax free super contributions, restrictions on business losses, changes to employee share scheme, tightening restrictions on medical expenses before you can claim them on tax, abolition of entrepreneurs’ tax offset, phasing out of dependent spouse offset, disallowance of deductions against government assistance payments, removing minors’ eligibility for the low income tax offset on unearned income, deferral of tax breaks for green buildings. Ridiculous!

Australia’s economy is in desperate need for a new government to abolish these short sighted third world taxes. We better hurry up whilst we still have something to save. We are already uncompetitive in international markets and our economy is in decline. Mining investment has been annihilated by Labor and as mining slows we have nothing else to take its place. We need to get the circus out of here!