Important for all Australians - Tax rates
•
by Gabriel White
Hi everyone,
Currently there is a debate within the Senate on proposed changes to the Australian Tax Act, you can see the debate here:
http://forum.auserepublik.com/viewtopic.php?f=32&t=4722&start=0
Basically, I am proposing to cut import taxes to oil, wood, and iron to 5%. The reason for this is to give a boost to the manufacturing and construction industries and result in lower prices on important commodities, especially weapons. So far there has been support from this from most parties.
However, another proposal given by the MoI is to increase the income tax to 50% on domestic oil, iron and wood to kill off the domestic industries. The reasoning behind this is that workers in these industries are better placed in grain and diamonds where we have a competitive advantage due to our high-regions in these resources. Of course, the company owners of oil/wood/iron companies will suffer, however if it gives us a competitive advantage and boosts growth in diamonds and grain exports, it may be in the best interests of the country.
So basically, the proposals are to
1) Lower import taxes to 5% on wood/oil/iron
2) Increase income taxes to 50% on wood/oil/iron
3) Both policies combined
While option 2 is quite a radical proposal, it has merit and needs to be discussed amongst the Australian community as a whole. Compensation for company owners in the iron/wood/oil industries is also another possibility. Senators would be interested in hearing your opinions on these issues.
Thank you,
Gabriel White
Senator for South Australia
Facebook
Twitter
Discord
Comments
As I've given my opinions on the Senate thread, I won't repeat. Just suffice to say that I am against raising income taxes.
Income tax rise to 50% for wood?
Do you want to kill the private hospital and defence system companies that produce their own wood? It would kill mine.
This would screw over the gov owned companies too.
Thats the idea that some are proposing, yes. We would rely on cheaper imported wood instead, and those working in the wood industry would work in grain and diamonds instead, which is more profitable for eAus as a whole.
Win 30 golds vote and sub
http://www.erepublik.com/es/article/media-mogul-loteria-de-navidad--1057092/1/20" target="_blank">http://www.erepublik.com/es/article/medi[..]/1/20
The problem with this is: "the best interests of the country".
What is the country, but the people who live in it? So, for the good of the country, you're gonna put businesses run by eAustralians out of business?
Nigel - I quote Paul Hamon from the forums:
"OIL : NONE FUNCTIONING
IRON : 6 FUNCTIONING (35 people working)
WOOD : 5 FUNCTIONING (15 people working)
4 of these are 1 person working in them, probably just the owner with 1-9 zombies..."
There aren't actually that many that you are putting out of business.
You are mad!
50% tax?! You and your senate comrades shoul be shot!!!
NO MERCY AND NO EXCEPTION!
What about the workers with a background in constructions? All of their time building up their skill level will be for nought. I understand where you're coming from, but the best way to get workers to move to other industries is to offer better pay than their competitors. That's how a free market system works!
Senate: get out of the road and let the market do it's job.
Construction companies won't be closed down. They will make more profit from cheaper imported wood.
"There aren't actually that many that you are putting out of business."
@ Gabriel: Then why bother doing it? Particularly if the workers are 'zombie' workers who aren't likely to strategically realign themselves in the manner you are hoping.
This is too manipulative for my taste.
Nigel - the workers will *double* their productivity by moving across to Grain/Diamonds! That's before taking into account that focusing the workforce into a smaller no. of companies also increases productivity.
When I checked, there were 90 active workers in Iron/Wood - merely proposing this tax change has caused many to move across to more productive industries.
Machine Madness: if you were producing Wood for your own companies in eAus, then you would be robbing yourself. You can buy overseas for half the amount, and thus make your construction companies profitable. However, as *no* private hospital or defense system companies in eAus have any active workers, I'm calling b*llsh*t on this one!
Oh, is the forum meant to be restricted? Once again, I get the "not authorised to read this forum" response.
If the domestic resource market is dead, then why the effort to kill it off? Ignore the propoganda. Invest in eAustralia.
As seen in the Senate Forum, I support the lowering of Import taxes.
I cannot support the increase of Income Taxes for companies as this would endanger the Industry-sourced supply Iron for the Government through a DoD owned Company. I'm yet to hear how that issue will be resolved.
whitelaughter: I already understood the broader economic benefits. I'm more concerned about the impact on eAustralian citizens. Firstly, it once again takes away choice. It effectively forces people into moving to grain/diamond companies. Secondly, the iron/wood companies in question are actually owned by people, who probably won't be terribly happy to have their companies put out of business by the government.