Rudd 3 years on

Today (June 15th 2010) KRudd stood in parliament and declared

“This entire debate has been out there through the public documents released by the treasury on where the overall direction of tax reform was going,” he said.

“Back on the 2nd of May 2008 the government announced it would be having this review into the tax system. On the 6th of August 2008 a discussion paper was released on the tax review entitled the Architecture of Australia’s Tax and Transfer System.

“That discussion paper raised the inefficiencies of royalties and pointed to a profits-based tax. It says these royalties can discourage high risk investments … it said a resource rent tax does not apply until the firm has earned above normal profits.”

Yep now lets look at the real facts.

• As stated it “pointed to” – not there would be one and definitely one at the level proposed just prior to the budget
• It stated  “…. it said a resource rent tax does not apply until the firm has earned above normal profits” Now interesting here us this proposed tax could this see the state levies being wiped out without any return to the losing states because abnormal profits would be wiped out and hence no collections for the states. A nice way to take tax collections away from the states and into the hands of the federal government.
• KRudd and Swan have made it clear that nothing would happen till the Henry report was released. The report is in and until this doozie not seen by anyone so NO DISCUSSION could have been in play prior to the announcement as no one knew what was in the Henry report.
• The Henry report NEVER suggested a tax at this level

He continued to say……………..

“As of the week that’s just gone past, consultation and negotiation continues with our major mining companies. Some of those companies are a long way down the path towards agreement, others are still some distance away.”

None of the majors are there. Why because it’s a fool’s tax bad for them and bad for the country. The only people on board at the moment are the government and companies that can take benefit from the proposed 40% underwriting on losses.

In all this not the massive silence from Gillard. She is smart enough to say “I stand behind Kevin Rudd” BUT not once has she without reservation supported this tax. Why? Simply put, it’s a loser and she knows it and while not planning to take the PMship she will will take it gladly and then drop the tax as a non supporter.  By staying away from the debate she is free to drop it, change it or if it suits pursue it.

The simple fact is KRUDD needs this tax to attempt a balancing of the books. Without it, the deficit in 2012-2013 would be $2Billion and in the following year 2013-2014 this deficit would increase to $4.4Billion. (See the budget figures). In plain words deficits would again continue to increase with KRudd in power.

With the gift of Federal Government debt of $150Billion (previously zero) and an annual interest bill of $9billion KRudd’s legacy to Australia in under 3 years is a debt situation that if you are 25 you will see with some luck payback by the time you are 45 but more likely 55. This is the man screwing up your retirement. 

and he thinks we are the idiots………………….