Double Dipping
WENDY Burbury’s letter (The Examiner, February 25) is correct. Labor’s plan to tax imputed credits is double dipping. But why does she find the matter exceptional?
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She is referring to Australian governments; devious tax schemes are probably the only assignment at which they consistently succeed; double dipping is just one of them. As an employee, the federal government relieved me of about 30 per cent of my earnings (income tax – dip No.1).
I’d take part of my 70 per cent to the service station to buy petrol, the price of which is levied at around .41 cents per litre (excise tax – dip No. 2). Then another 10 per cent is added (GST – dip No. 3).
And if this isn’t sufficient, the GST is paid on the excise tax (arguably dip No. 4).
With my remaining funds, I’d head to the bottle shop and quelle surprise, a bottle of spirits is costed in a similar manner, except the excise duty is about 10-times higher than petrol. I’m pleased I don’t smoke; the excise is about .80 cents per cigarette.
And let’s not forget the state government.
Check your car registration form and note the motor tax, duty and GST.
Or the taxes on gaming, and that’s after the casinos pay licensing fees. Liberal or Labor Ms Burbury, it’s much the same deal.
Graeme Tonks, Norwood.
Imputation Refunds
BILL Shorten says no tax refunds to people who haven’t already paid the tax.
But one argument is that the company paid the tax on behalf of the shareholder so perhaps the tax was paid. High taxpayers have to pay extra on dividends which supports the idea that tax paid by companies is on behalf of the owner-shareholders.
The basic question is left unanswered, is company tax owed by the company or owned by the shareholders who own the company and receive the dividends?
So, the problem really is, confused and conflicted politicians, who don’t know what they are doing.
If company tax was defined as the tax paid on all company profits and that it will always be at the minimum rate of 30 per cent and that this rate will be paid in the hands of the company (to contain tax cheats), but that this company tax will be due at the marginal rate of the receiver of the profit/dividend where their rate is than the 30 per cent.
Then it becomes clear; company tax is at a minimum 30 per cent rate or higher for high-income owners of that company.
Might put a floor on writing-off losses, negative gearing etc, against franked dividend-based company tax receipts.
Funny that Bill Shorten thinks this OK.
M. Fyfe, Riverside.
B-double dilemma
I WAS privileged to visit a property recently and was shown a pine plantation that is ready to harvest.
However, the owners have been told they are not allowed to use B-doubles during the harvest to go through the Evandale village.
On the way there a piece of farmland was shown to us that has been bought for a village to be built over a period of time.
Doubling the size of Evandale.
How can the council stop B-doubles going through the village for a few weeks when they are allowing a village to be built which will have dump trucks, builders' trucks and excavators working to build new roads and generally do a lot of damage to present infrastructure over several years while the houses are being built?
I do not believe that good farmland should be used for suburban infrastructure which in this area will mean that roads will have to be upgraded. I would not like to see Relbia Road lose its history and charm as a hedge lined country road.
The Evandale Road going past the airport is a disgrace and needs properly upgrading.
Peter Thyne, Newstead.
Minister Exodus
THE old joke use to be “will the last person leaving New Zealand please turn off the lights”. Seems this needs an update to “will the last government minister leaving the party room turn off the lights".
A. Carter, Mowbray.
Tasmanian Football
FROM Kermandie to Colebrook, Winnaleah to Exeter, to Smithton and Natone, the number of football clubs that shut down in Tassie is as long as your arm and growing.
I sympathise with the hardworking volunteer club committees and AFL Tasmania all seeking a solution.
But the crisis began decades ago when AFL football, previously shown only on TV Saturday nights, was beamed directly into Tasmanian and regional Australian sporting homes in competition with local footy.
Locally, the crowds and player numbers immediately dropped, and clubs began to close. Until then, Tasmania attracted great footballers in the twilight of their VFL/AFL careers like Paul Sproule, Peter Hudson, Wayne Wiedeman, Peter German who the public wanted to see.
There isn’t the money to do this anymore.
Instead of Tasmanian governments subsidising million-dollar AFL clubs who can afford to pay their way in Tasmania, divide the subsidy among Tasmanian clubs.
That’s a start. Go the Dees.
Michael Mansell, Launceston.
Power Bills
The government recently sprouted that we would receive a savings of $200 a year in our power bill.
Nobody knows how much power they will be using so, therefore, nobody knows if they are saving money or not. The only way I know of reducing our power bill is if Aurora would show where they deducted $50 per quarter on our actual account.