07 – Why the Debit Tax is better
A much fairer system where everyone pays, including the big companies, local and foreign owned.
Collecting enough tax revenue to run the country is a vexing problem. Reducing the deficit would seem to be an impossible task. Australians living and working in this country are taxed to the max, and squeezing more blood out of this stone is grossly unfair, when a huge sector, mainly the foreign owners of Australia, take their money out of the Country, tax free. That’s right, one big sector of people making profits in Australia, pay little or no tax. Treasurer Scott Morrison is currently reviewing our tax mix and claims he wants a FAIRER, SIMPLER and LOWER taxation system. The Debit Tax fills all three criteria.
The overseas owners, doing business here, seem to think paying tax is optional, and can take their profits out of the Country practically TAX FREE. Yes that’s right. Take Ikea for instance. That Company had a turnover of $4 Billion, made a profit of $1,030,000,000 but only showed a taxable profit of $103,000 and paid tax of $30,000. That is tax of 0.0029% on true profit, and tax paid of 0.029 % of profits they bothered to declare. Do you believe this Company is dodging tax? Are they using Transfer Pricing to move pre-tax profits out of Australia. They make no profit yet they can open new stores every year. Come On!!!
The Debit Tax should be introduced to replace the GST. The Debit Tax has everything good about it to correct everything bad about the GST. It is fair because everyone pays it. The GST is a selective tax that only hits the consumer. The Banks and overseas owners don’t pay it. Very little is paid by big business. The Debit Tax is efficient and costless to collect. It’s all done by computers. It collects more and would be relatively painless to the taxpayer. Just 1 cent in the $, would collect enough revenue to fund the entire budgets of all State Governments and the Federal Government. With just 1% tax in the $, all other taxes could be abolished. Yet the Debit Tax was not allowed on the agenda at both recent Tax Summits, The Australian Taxation Reform Group Inc. http:// WWW.ONEFAIRTAX.ORG.AU Most of the big businesses in Australia are majority foreign owned. Mining is about 80% foreign owned. The Banks are $70% foreign owned. None of these foreign owners pay any GST, and pay little or no tax. They are getting a free ride at our expense.
The National Debit Tax is so simple. Under this system of taxation, one cent is levied per $1.00 from every banking withdrawal and forwarded directly into the National Treasury via EFT. Debit tax is the electronic paperless taxation system for the 21st century! Did you know… * A one percent tax on all withdrawals from financial institutions would raise about $470 billion dollars annually – twice the amount of the current Federal tax system. * A one percent debit tax would eliminate every other tax, including tax returns.
The advantages are;
- No income tax
- No annual tax returns
- No GST or BAS
- No more fuel excise and GST – fuel could be 50c cheaper!
- No more threats from the ATO
- No more ATO bureaucracy!
- It is costless to collect.
- It costs the business nothing to comply
- It cannot be avoided or rorted.
- It is such a low rate in the $ as to be almost un-noticeable.
- It is collected automatically and forwarded to the Treasury by EFT.
- Transfers to Bank Accounts, domiciled in foreign countries, would be taxed at the same rate, that is, 1% in the $, as it passes through SWIFT. Direct exports of produce from foreign owned farms or mines should be valued and included. At the end of the day everyone pays the same rate of tax, but most importantly, the FOREIGN MULTYNATIONAL COMPANIES START TO PAY SOME TAX.
Does THAT APPEAR TO BE THE FAIRER, SIMPLER, LOWER TAX THAT SCOTT MORRISON IS LOOKING FOR ?
The Goods and Services Tax should be abolished. This tax is the most unfair tax ever devised, as it is biased against ordinary Australians. It mainly falls to the end consumer to pay, and allows big business, big Banking, and other big Companies to avoid paying it, or pay very little. It is levied on a business whether it is making a profit or a loss. It is extremely costly to administer, and time consuming. Contrary to claims at the time of its introduction, it doesn’t end the “black market economy”, it fuels it.
AN EXCISE ON ALL MONEYS LEAVING THE COUNTRY
A 5% tax should be levied, on all money leaving the Country, for purchases of goods or services, and holidays abroad. This Tax would encourage local industry by making imports 5% dearer. Local tourism would benefit.
A 10% tax should be levied on all dividends leaving the country. A 10% Witholding Tax should apply to the value of all exports in kind, eg. beef, milk, mineral concentrates, gold etc.
This revenue collected is not for the purpose of running the Country, but to buy it back from the foreign owners. This money should be channeled into a National Superannuation Fund, for the benefit of all citizens. For more than 100 years we have made it easy for foreign Corporations to buy out our mines, banks, inventions and enterprises. In fact we have encouraged the practice, because of a fallacious notion that we need foreign capital to develop the Country.
The DOUBLE TAX AGREEMENT
This would probably be the most treacherous piece of legislation ever foisted on the Australian people, and it is not publicized. The name itself is a misnomer, as it really means NO TAX PAYABLE IN AUSTRALIA by foreign owned Corporations. All they have to do is declare their income in some foreign country, and no tax is payable in Australia. Of course that country will be a tax haven in the Caribbean or Ireland. That’s the Law. How many times do we hear an executive say “We pay all the tax required of under Australian Law”, and they do. The only problem is the law says they don’t have to pay ANY TAX. When confronted by the fact that Foreign Corporations pay little or no tax in Australia, the ATO, Treasury and our politicians wring their hands and profess to be doing all they can to make them pay some tax.
This shortage of revenue is why the ATO, a private Corporation, ABN 51824753556, and registered with the US ASC, has to pursue the individual PAYG taxpayer and small businessman to the ends of the earth, over every Dollar. They use the most ruthless methods, with draconian legislation, penalties and late fees, and then acting illegally at times to pursue debts that they have not justified. Australians are the highest taxed people in the world, and the Tax Act probably the largest and probably the most complicated, and ambiguous in the world. All the better to tax you with. It is designed so that Foreign Multinationals pay NO TAX and you the battling Australian pays it all.
People, it doesn’t have to be like this, but you have to insist your Government works for you, not their foreign masters. Changing the Party in power won’t change a thing. All Parties are all in on this fraud, perpetrated on the people they are elected to represent.
What you should do, NOW
- Contact as many State and Federal MP’s as you can, and tell them it is your will that they implement the debit tax, and abolish the GST. He will probably pretend he doesn’t know anything about it, but he does.
- He might tell you that it will not work, or that it won’t collect that much revenue. If he does, he would be wrong, because it has been examined by the best accountants, and it does work.
- Ask your Federal MP to get it checked out by the Finance Department. They already have, and it does work. If it didn’t work, they would be saying so.
- Circulate this in a petition
- Put this on Facebook
- Contact ALL members of parliament and demand that this DEBIT TAX be implemented, AND, all other taxes abolished.
- If your MP says it won’t work, ask him what he plans to do to get the Foreign Multinationals to pay SOME tax.
- Demand that the Government rescind the “Double Taxation Legislation”