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Posts Tagged ‘tax’

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!

Danish Fat Tax Scrapped – A Lesson for Australian Tax Philosophy

November 13, 2012 3 comments

Danish lawmakers have scrapped the fat tax – a tax designed to encourage people to eat healthy food. The Danish tax ministry quoted:

“The fat tax and the extension of the chocolate tax – the so-called sugar tax – has been criticized for increasing prices for consumers, increasing companies’ administrative costs and putting Danish jobs at risk”

Sounds exactly like the taxes recently introduced by the Labor government in Australia. Sure the stuff being taxed is different, but I’m talking about tax philosophy. I’m talking about how governments go about maintaining a healthy economy whilst at the same time achieve other social and environmental goals. The consequences of the Danish fat tax are exactly the same as the consequences of the carbon tax and mining tax. Australian jobs are at risk and living costs are forever increasing.

Is taxing stuff the answer? Is adding to our already high cost base the best way to go when we already can’t compete in international markets? Manufacturing, tourism and retail continue to decline and the new taxes keep rolling in.

Mette Gjerskov, the Danish minister for food, agriculture and fisheries, said during a news conference:

“The fat tax is one of the most maligned we [have] had in a long time. Now we have to try improving the public health by other means.”

You mean there are other ways of achieving a goal apart from decimating business through tax hikes? Labor take heed. We need a government that can manage the budget and lower the cost of Australian business. The current government in Australia is exactly the opposite.

Increasing Tax on Cheap Wine

October 30, 2012 Leave a comment

Labor’s perpetual tax hikes are proceeding unabated with a plan to increase tax on cheap wine. Australia already has one of the highest tax rates on alcohol in the world. From this world leading position, labor wants to further increase tax. This is just another tax hike in a long line of tax hikes introduced by the labor government, further adding to Australia’s cost base and exacerbating our uncompetitiveness in international markets. I suppose the revenue raised by their introduction of the alcopop tax has not been enough to curb their inability to manage the budget.

See other politics section for more information about labor’s addiction to spending and strategy of continuous tax increases.