Just sharing the love boys...... We have a right to be fully informed to make intelligent decisions based on facts, as rational conscious beings! Unless you prefer to be a mushroom that is.....
"Then Abbott and Hockey impose a 1.5 per cent levy on taxable company incomes of $5 million or more, which will affect about 3200 companies who represent the bulk of company tax raised.
But the levy will be offset by a 1.5 per cent fall in company tax so profit-wise there is no effect on large corporations (and small companies win because they do not pay the levy).
But then comes Tony and Joe’s sleight of hand attack on retirees. Many big corporate taxpayers, like banks, pay around three quarters of their profits out in dividends and there is constant pressure from retirees for companies to payout more, especially now interest rates on bank deposits have been reduced. Most dividends (but not all) are fully franked because they come out of tax paid profits.
So a superannuation fund obtains a franking credit equal to the tax paid by the company. Those franking credits are currently calculated at a tax rate of 30 cents in the dollar. When the Abbott-Hockey plan is introduced the franking credits will be calculated on the basis of 28.5 cent in the dollar. They are worth less and so the retirees and those saving to pay for retirement cop the bill because Abbott and Hockey have simply swapped a tax for a levy aiming to lower the franking credit.
It is a clear attack on the older generation to benefit the up and coming generation."
