John Gibson Senate Independent Candidate Qld – Big Business Tax Cuts
The debate about Big Business Tax Cuts has become a major 2016 Federal Election issue. Labor strongly opposed, believes that the revenue lost to the taxation department is too big a burden on the economy and that instead of providing benefits to big business the money should be distributed to schools and hospitals and any other social services in need of funds.
Regardless of your personal views tax cuts to big business will flow through to the bottom line, increasing big company investment and improving productivity. If you have any real understanding of the economics of tax cuts you will know and agree that tax cuts to business will be a benefit to Big Business.
However, there is much more to consider than mere investment and productivity and this appears as usual to be overlooked by both major political parties. The tax cuts to small business also benefit investment and productivity and most of those are Australian Owned. So what falls out on the bottom line benefits Australia and the revenue generated stays in Australia. So as those small businesses experience growth through reinvestment you should see an overall growth in small business.
Sounds good, but probably not as good as it should be! As small businesses experience growth so they experience the increased cost of doing business eg the overhead costs of new General Manager, the new OH&S Manager, The new HR Manager, the new Accounting Manager and of course each new manager has a new assistant, and of course we now have had to move into bigger business premises, and now the new large workforce and employee benefits and now the bank manger says your bottom line has dropped, you are a bigger risk now and your overdraft fee of 12% is now 14% and you don’t have enough assets to cover the risk of a bigger loan.
So now that small business slowly bleeds to death, strapped for cash, delivery dates blow out,creditors are knocking on the door. So now the business takes a dive, customers go elsewhere and we have to downsize. But we can’t terminate the General Manager or the OH&S Manager nor the Accounting Manager because they have built their empires around new company policies and the company cant possibly operate without these overheads as they would be breaching company policy and the laws and acts associated with doing business. So now the once successful business closes,creditors and workers unpaid and all of the business that they generated goes to the big business down the road who is now so ultra competitive because that business has received hug tax cuts.
Welcome to the small business cycle in Australia! Be assured, except for small family owned business in this country small business is on its way out. It wont be long before small business is a thing of the past. A good example – the corner store versus the Coles and Woollies conglomerates.
So what about the overall scenario of big business tax cuts. Well,as they gobble up the cash strapped small businesses with the aid of the new taxation benefits they can pay their foreign investors more dividends and move their manufacturing arms offshore, reduce their Australian productive workforce, import all of their products and make more money. But wait, there’s more, we now have so much money we will pay too much tax so we will set up a Singapore Office and provide some shonky loans to the Australian branch and minimize our tax liabilities. It wont be hard to do this because we have already been doing it for years. Silly Australians.
So why would the Australian Government of any political color be so stupid. Because that’s what the Chamber of Commerce, the Grattin Institute, the Big Banks, the Lobbyists, the Bureaucrats have said “this is what you must do”. The multinationals are laughing at us.
How do we stop it. You can stop it by making a change, only the Senate cans stop it because political parties can’t because that’s what they have been told.
Labors protest at big business tax cuts is see through superficial because if they got into Government which is broke they will have the very same advisors.
You won’t even be able to change tax cuts to big business at the polling booths but you can initiate change to those Senators who will take action – I just happen to be one of them. Vote 1 John Gibson Independent for the Senate.