The Forum > General Discussion > What is the role of a public broadcaster?
What is the role of a public broadcaster?
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Don't be a supercilious pratt. One my degrees is first class degree in economics, and from your reply it's obvious you have no such qualifications.
Clearly you haven't read the article because the assertion is repeated in the article:"It’s also disingenuous to talk about a 30 per cent rate when so few companies pay anything like that thanks to tax legislation that allows them to avoid paying corporate tax. Exclusive analysis released by ABC today reveals one in five of Australia’s top companies has paid zero tax for the past three years." To avoid looking like a twit do your homework.
Secondly, clearly you are struggling to grasp the concept wrt depreciation, so here's a simplified example:
A plant spends $100m upgrading its facilities, and as a result is now making $20m profit a year before depreciation.
If the depreciation is over 5 years, the plant will write off $20m p.a. and thus make no taxable profit for 5 years but pay $6m thereafter.
If it writes off the plant over 10yrs it will write off $10m p.a. and thus pay $3m p.a. on the $10m taxable profit for 10 years, and $6m p.a. after that.
The net result of tax paid and depreciation over 10yrs in each case is the same, but the effective tax rate initially on the first model is 0% and on the second is 15%.
Case 1 is slightly more attractive than case 2 to long term investors.
Government spending reduces unemployment, but generally discourages external investment.