Rudd 3 years on

Lets get something clear right away. This is a tax scam. Why? Because you the average worker will not be the winner. It is just an electoral short term vote getter which will see this country and you as the ultimate loser. Here’s why……..

Some of the miners are making large profits out of resources and on paper KRudd’s comment of  “Over the last decade the mining companies generated $80 billion in higher profits. At the same time governments on behalf of the people received only an additional $9 billion,”  is not the full truth by any distance.

First of all before I go into detail lets look at KRudd’s history on Howard government spending from 2000 thru to 2007.  According to Rudd, Swan and their fellow puppets the Howard government wasted the previous boom by haphazardly giving away 94 per cent of all the windfall tax revenues as they came along. This helped overheat the economy, driving up inflation and interest rates. Now if that is true they gave away about $8billion dollars over 10 years. Yeah right it was more like $15billion per year in tax cuts and especially child rearing benefits.

BHP is huge with operations in Australia and overseas. Over the last 10 years it has paid $25billion in income taxes and state resource taxes. On top of this, through it’s direct employment in Australia has collected income taxes on employee earnings in excess of  $20billion dollars. However it does not end there. It has paid out in excess of $20billion in dividends of which about $8billion has finished up in the hands of Australian superannuation firms for the benefit of all Australians. It pays to remember that the higher earning Australians who got dividends may have paid up to another 15c in the dollar tax on those dividends.

So over a ten year period BHP alone has put into the Australian economy through income tax on profits, income tax collection, dividend payments, resource taxes and GST on final consumption (plus others) over $100billion.  Australia’s economy is around $1trillion per annum at the moment. Over the last 10 years it has adds up to $8,800Billion. Now the industry (not just BHP) contributed over $1,300billion during that period. What would happen if activity dropped by just 10%? would this amount to a $13billion loss per year. Actually because of the flow on affect it would amount to around $15billion a year. Think about it. Every cent KRudd claims to be clawing back and then some will be gone each and every year.

What will be the loss to the government revenue stream if companies such as BHP no longer repatriate money back from foreign earnings to Australia? What is the loss to your superannuation funds from reduced dividend payments to your superannuation fund manager and ultimately to you? What happens when BHP and others decided to develop mines elsewhere under friendlier  tax regimes? What happens when your job disappears in the future as mines are no longer upgraded and or developed? It’s not just miners that go but every part of Australian society that gets their spending.

Remember Gough Whitlam? He tried the same and the results where disastrous and it took 20 years of both Labor and Liberal governments to roll back the damage. This is socialism at it’s worst. Results mean penalties so why try to succeed. It has failed everywhere – every time.

Look through the policy and see the following

• The government is only returning 70% of the grab
• There is no guarantee (as he talks in absolute dollars not a percentage) that the workers share of the windfall will ever increase.
• Once again he is bailing out his state buddies with funds for infrastructure that they are already getting under the GST but wasting.
• Out of this the biggest share is going into general revenues – only 25% is going in to superannuation.

Kevin Rudd is continuing with his lie about where the country is at.  The truth is Australia owes $1Trillion dollars to the world (equal to a whole year of Australian GDP) and can not afford to deny itself of any revenue. The problem is the disaster will not strike for 5-15 years as what we have winds down and is not replaced. By then Rudd will be gone but YOU will still be here to suffer the consequences.