A response to Judith Sloan supporting negative gearing in, “Doomsayers ignore the facts when picking targets.”
Imagine you are the new CEO of a successful Australian media organisation that is merely a subsidiary of a larger international parent. New to your role, you are spending time with the various editors. During your conversations with these editors, you have discovered that they all believe making a profit is a bad thing.
Each editor believes that it is better to make a loss, because then the loss from their division can be claimed as a deduction by the parent company against the profits made by the parent company.
Bemused, over time you prod deeper at this view, but to your dismay, you quickly learn this view they hold is not some whimsical buzzword that will disappear into the ether in a few months time, it is a firmly held principle. Profits are bad, losing money is good.
So you attempt to reason with them.
Despite doing your best, they counter with:
“But the parent company can borrow to cover the loss from our division and the interest on that loan is actually income for the bank lending the money.”
“By losing money selling our newspapers and magazines we are effectively helping to educate the poor who wouldn’t be able to afford our product otherwise.
“Lots of smaller media organisations are also losing money, it’s not just us.”
What would you do?
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The above letter to the editor was sent to [email protected] at 8:44pm on the 8th of July 2014.
Image above from Club Troppo.
Note: I did a quick check on the ATO website and couldn’t see any problem with what Judith was saying on super in her article.
Good response David, no doubt Judith or those close to her have some negatively geared property to help colour her view…
The Wilson Australian TAX SYSTEM
Australia, Re: FIX OUR Tax system
The best and only way I see to fix our tax system is drop all income taxes on earnings/wages etc., so there is NO tax reductions as you no longer have a taxable income and increase pensions by 10% to offset this.
Increase super up to 18% as they no longer have to pay any income tax.
Just use a Transaction/Consumables Tax at just 15% NOT a GST of 10 – 15%.
With no Transaction/Consumables Tax payable on wages paid.
Sounds silly I know but please let me explain, this way all buyers are treated in the same way.
Pay 15% when you buy anything.
Regardless of how much you earn you can only spend it once, so the maxim Transaction/Consumables Tax would = 15%
The ATO can keep the special tax on Prestige & Luxury motor vehicles, alcoholic drinks & tobacco tax etc.
Also overcome the problem we have with the HFT in Australia!
Anything grown, mined or produce within Australia must be sold in Australia at the current wholesale price and the 15% tax paid on it.
A Transaction/Consumables Tax (TCT) on all money with NO EXEMPTIONS.
Charge just 15% (TCT) on every sale/invoice.
Don’t allow any BAS claim backs at all.
All money moved offshore has 35% tax on it with NO claim backs
Our yearly $$ turnover in Australia is over 20 Trillion Dollars as this would give the ATO a tax income of well over $ 500 billion per year.
The only fair way is to make every purchaser pay (TCT) on every purchase with NO EXEMPTION, every thing from a loaf of bread to a jet plane.
And undoubtedly the winner will be the ATO, our Federal & local Governments.