Andrews government plan to raise taxes - Politics Forum.org | PoFo

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#15173294
PM ‘concerned’ about Andrews government plan to raise taxes

Prime Minister Scott Morrison has raised concerns about the Andrews Labor government’s plans to increase taxes in next week’s budget.

Victoria is set to unveil a swathe of tax measures targeting high income earners as the state struggles with a mounting debt and much-needed revenue for coronavirus recovery schemes.

Anticipated tax hikes include a $2.4 billion property tax increase and a 50 per cent tax rate for developers who reap windfall gains above $500,000 when their property is rezoned.

A new premium stamp duty rate for property transactions valued above $2 million is also expected in the fast approaching budget.

Mr Morrison said the Coalition’s plans for Australia’s recovery from the coronavirus pandemic was to be fuelled by lower taxes.

“Lower taxes are underpinning Australia’s economic recovery from the COVID-19 pandemic,” he said.

“That’s why it concerns me that taxes are rising here in Victoria under the Labor government and equally the federal Labor party is looking to increase taxes as well.

“That’s not how you grow your economy. That’s not how you get people in work. That’s not how you help them buy their first home.”

https://www.skynews.com.au/details/_625 ... yNewscomau

This will drive business/people out of Victoria into other states.
#15173322
State Premier has a lot of good will behind him with how he handled the pandemic and communicating with the public in comparison to Scott Morrison. Dan Andrews is popular as ever and seems it gives him the political support to actually push for more labor orientated policies rather than big business ones.

To know whether taxation is enough to compel certain companies in dofferent industries to set up elsewhere would have to get i to specifics I imagine otherwise one can vaguely reference any tax hike on the wealthiest as scaring away business. What over $2 million dollar tax on property dealings gonna scare away anyone? Housing market is already ridiculous, actually need more to reduce real estate as mere investment properties for the rich and actually foster the means for supporting the average aussie getting s homes.
Victoria is an attractive part of Victoria and I don’t see people running away from markets from some taxes unless one can show it cuts too far into their profit margins so as to make profit untenable or too risky.
#15173597
Businesses may ‘move their capital elsewhere’ due to Victoria’s proposed tax increases
21/05/2021|7min

Sky News Business Editor Ross Greenwood businesses in Victoria may decide to “move their capital elsewhere” due the tax increases proposed for medium and large businesses in the state’s budget.

“The justification of Tim Pallas is the state’s got a lot of debt and we’ve got to try and get out of it … and big business is in the best position to do this,” he said.

“The question is whether you’re really taxing the right people and whether this flies in the face of what the federal government is doing right now, trying to provide as much support to make certain the economy does not fall backwards”.

Mr Greenwood pointed out businesses can choose where they invest, and they will be more likely to move to a “low taxing environment” where the borders “stay open more easily”.

Victorian Treasurer Tim Pallas has argued big businesses should “help deliver a generational reform” because many continued to profit during the pandemic while “pocketing taxpayer subsidies along the way”.

However, Mr Greenwood pointed out “the taxpayer incentives that have been given to business to have jobs created during the pandemic have been federal government incentives, not state government incentives”.

https://www.skynews.com.au/details/_625 ... 0increases
#15173616
I get the feeling that skynews isn’t really giving the in depth analysis to helps determine the prospect of what businesses might leave and more specifically why. The oooh taxes will run businesses away seems a scare tactic that in general has a grain of truth but its applicability isn’t shown in this particular case.
See even the assertion of moving in the article isn’t even about taxation but about Dan Andrews locking down borders amid the pandemic. Which works in tandem with the campaign to smear Victoria and Dan Andrews as the worst in Australia.
But that problem has since not been confined to Victoria and Australia as a whole remains in a shit position due to the federal governments incompetence to adequately plan on resourcing vaccines and their logistics to roll them out fast as possible. Ao now we have businesses saying that we cannot be under lockdown indefinitely to give a isage to the idea of opening up and losing the advantage of being a contained island.

However the gain of wisdom in the article on the basis of an unanalyzed tax proposal is that businesses do choose where they invest ans they incest where ever is profitable but bow easily one can return a profit still has some practical concerns based on the business and type of ndustry that doesn’t automatically means its worthwhile to spend money jumping ship for what may not be a significantly better market.

Ans the original article is all focused on massive property dealingswhere Victoria had experiences a boom in property development. I came from Geelong where Melbourne folk are blowing that place up for a smaller city with decent services. See it in the city where all the pubs and inner suburbs are gentrifying.
What were considered places of poverty are getting bought out by wealthier types. I remember people talking shit about Norlane and Corio and their class character is changing slowly with the massive expansion of Geelong. They’ve even broken the sky limit on buildings when they introduced massive TAC building near the Deakin University.

Basically I don’t know that such fears are applicable necessarily as there are things which can lead to speculation of retaining significant profit in-spite of taxes.

Hence one would need to make a more informed case of what a real estate or property development business is making in profits, the state kf the market here and in other states and costs of moving business and so on to out in perspective how realistic the concern of companies leaving.

To me it sounds like the labor government may well be doing a smart thing trying to find revenue for issues amidst the pandemic where I sure as hell don’t trust Scott Morrison perspective of absolutely anything. The assumption that low taxes will inherently provide a basis of rebounding of the economy is more just a matter of class based faith. Rather than balanced macroeconomic considerations. So I say good on Dan Andrews not toeing the line with the Libs and clearly paving their own path consistent with labor party values.
#15173717
Victorian ‘horror show’ budget is ‘deeply depressing’ for business
23/05/2021|3min

Sky News host Rowan Dean says Victoria’s recent “horror show” of a budget is “deeply depressing” for businesses trying to recover and build post-COVID.

Victorian Treasurer Tim Pallas unveiled the state’s budget on Thursday in which a proposed payroll tax quickly came under attack by Treasurer Josh Frydenberg who labelled it “bad news” for jobs and the national economy.

The move will affect businesses with a payroll larger than $10 million, and will slap a 0.5 per cent surcharge on those companies’ payroll bills in a bid to fund the government’s new $3.8 billion mental health package.

The treasurer also unveiled a 17.8 per cent wage increase for the Victorian public service over four years including a 9.6 per cent hike in the next financial year.

Sky News host Rita Panahi said it was “absolutely appalling” to see the government reward the public service with massive pay rises while the private sector was “on its knees”.

https://www.skynews.com.au/details/_625 ... 20business

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