Where’s the Money Coming From?
Complaining about tax is not simply a national sport in Australia, it's a phenomenon enjoyed across the globe. I first studied tax at a time when private companies – still the backbone of our free enterprise society – paid 50% of profits in tax, and were obliged to pay dividends (no franking credits in those days) to avoid the “undistributed profits tax”. This was designed to ensure that the shareholders received those taxable dividends - and then paid more tax.
Billions of handout dollars are currently being doled out by the government to keep our population fed, housed and employed during this crisis because many employers are simply unable to carry on their business and therefore cannot pay their workers.
Cynics will be asking “Where’s the money coming from?”
It's coming from taxes of course, and not just those paid by the current generation of workers and businesses. Thank goodness we don’t live in a Marxist state where private enterprise is regarded as simple exploitation of the working class.
The conversion of East Germany after the fall of the Berlin Wall is a wonderful example for us all that Karl Marx had it completely wrong!