Shorten is far worse than Rudd or Gillard, page-169

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JonnoH

16,319 Posts.

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01/04/18

10:14

Post #: 32156956
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Originally posted by dharry ↑

Let’s work through an example, e.g. take a large investor in Australian bank shares. He could sell into the market, with his surplus stock likely picked up by investors in Asia or Wall st (around half already is foreign owned). Future growth and dividends on these shares would then be transferred offshore, out of Australia. This will continually increase Australia’s deficit.

Now this investor could decide to redeploy his capital into Berkshire Hathaway for example, Buffett’s company based in the USA. Berkshire pays no dividends, instead accumulates earnings within the company and pays taxes in the USA. So even if this investor has 100 million in Berkshire he'll be paying NO tax in Australia at all. He has now become a US taxpayer instead of an Australian one. If he wishes to sell one day he'll become non-resident and pay no CGT either.

Despite everything you hear banks now run on a low margin of around 2%. Their AA-AAA standing in the world is what allows average Joes to borrow at such low rates for their mortgages. The banks take risk on millions of Joes but have access to low rate foreign and domestic capital markets. E.g. Hybrids. This will cease. Rates will rise. Australian domiciled capital is precious.

Ask yourself is frightening away capital good for Australia? Why do other countries do the opposite?

Ask yourself honestly how deeply was Shorten thinking to not even see his hair brained scheme blanket covered low income earners?

Genius brainstorming? Boozy lunches? Arrogance? Vengeance? Indifference?
These things I hate. Potentially Catastrophic.

Fail.

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Or they could be purchased by the >92% NOT affected by the change at all.
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