The Business Council of Australia (BCA) has teamed up with the BHP CEO, Wesfarmers CEO, Qantas CEO and the boss of Energy Australia to demand that the Senate crossbench pass the company tax cuts. According to the BCA, the full company tax cuts should be left on the table because, wait for it, “it is the only plan Australia has got to drive growth and investment”. You are joking right? The only hope, according to these clowns, is that multinational companies who currently spend most of their time dodging paying of their fair share of tax in Australia must get this tax cut because its the only thing that they have come up with to improve growth in Australia. I would suggest that these CEOs hand in their collective badges if that is the best that they can offer their shareholders. Where are the visionary plans, where is the investment in new sources of energy production, where are the plans for creating meaningful jobs, instead a tax cut so that the rich can have an extra coffee on Sunday served by a part time worker on reduced penalty rates. How about coming up with full time jobs for young Australians, not in shuffling paper and pretending to create wealth by shuffling said paper, but in real wealth creation jobs such as manufacturing or agriculture.
We all know that at best, by the Productivity Commissions own research, after 20 years the expected increase in GDP due to this tax cut is less than 4% OVER TWENTY YEARS. This is not a plan, this is simply the rich continuing to line their pockets while governments have to reduce their services in order to balance the books. If the rich want to see what happens when the poor say enough is enough, just continue on this path of greed and indifference to the plight of ordinary working Australians. Its appalling the way that young people are being treated at the moment with only casual work and/or part time work, house prices and rents getting further out of reach, employers using sham contracting to further cut wages… all of this is leading towards a dangerous situation.
For those wishing to see the future of Australia as seen through the eyes of the Liberal dries and their cronies, have a look at the Four Corners (http://iview.abc.net.au/) episode broadcast on 13th March 2017. Prepared by a french documentary team, it shows the end results of a low wage policy and how extremely profitable companies are abusing their power and using dubious methods to cut the wages of their employees. One example, GE, distributed $26 billion to its shareholders last year while at the same time closing a locomotive factory in one state and opening a new one in Texas where they are able to pay their employees half what they are paid at the existing plant.
We continue to see this sort of behaviour in Australia. The Liberals privatised the power market in Victoria with the promise of cheaper power through competition between retailers and improved efficiencies in production of power. The end result has been ever increasing cost of electricity to consumers and ever increasing profits to both power retailers and wholesalers . Its worth noting how the retailers have no qualms in ripping off consumers that return solar energy back to the grid. Retailers pay wholesalers approximately $0.28 per kilowatt for power but only pay customers $0.06 for the power they produce to then sell it to the next door customer for full price. The market supposedly has its behaviour controlled by market pressure but, as we constantly see, this is simply untrue. Large companies collude to limit pay rises for their employees while scratching each others backs when it comes to executive pay. Consumers have little power in the market – they have to take the prices offered because companies operating in a global market can sell their goods to whomever pays the highest price (e.g. natural gas shortages in Australia because the asian consumers will pay more for it). Governments cannot force them to take lower prices as they would then be accused of attempting to nationalise an industry or of breaching free trade agreements. The reality is that the rich, that is the shareholders, don’t care what poor people have to pay as long as the rich continue reaping obscene profits and have the ability to live the lifestyle they desire.
Rich Australians, compared to their overseas counterparts, are more self serving and less altruistic. Occasionally one of them makes a grand gesture that makes it into the media because it is so rare. I commend those people but would encourage them to become the conscience of the rich and show them they need to share the wealth with all Australians, especially their employees.