The way I see it, capitalism is probably the best way out at this stage, the problem we have is the tax system, it renders capitalism unsustainable.

Hey mhaze

"I wonder how many of those prognosticating about forcing companies to pay tax realise that tax is paid on taxable profit. No taxable profit means no tax. Comments like " but a minimum of 5% tax must be made payable to the ATO" make zero sense. 5% of what?

That comment was perfectly valid.
All companies need profit to exist, and I was talking about multinationals like Google or Mcdonalds.
If they don't make profit then why do they have a share price?
Why do investors invest in them if there's no profit and hence no return?

"eg 'If I work and earn $100 after tax and I give that money to you, why should the government get a cut?' "

They don't get a cut. Honestly. The blind leading the blind

For this I'm not sure if you're correct or not.
We'd have to look at what the ATO says about gifts.

http://www.ato.gov.au/Individuals/Income-and-deductions/Income-you-must-declare/Amounts-not-included-as-income/

Other amounts that are not taxable

Generally, you do not have to declare:

- rewards or small gifts such as cash birthday presents (however, gifts may be taxable if they are large amounts or you receive them as part of a business-like activity or in relation to your income-earning activities as an employee or contractor)

So, large gifts MAY be taxable.
In situations when they ARE, it means my argument was certainly valid.

If I earn 1 million dollars and pay tax on that million dollars
(Which means that the government already took their share when it was EARNED)
Then why does it get ANOTHER SHARE of that money if I decide to TRANSFER OWNERSHIP of it to you?

It's double dipping.
They already got their tax when it was earned.

The same principle applies for tax on inheritances;
http://www.ato.gov.au/general/capital-gains-tax/deceased-estates-and-inheritances/deceased-estates-and-capital-gains-tax/

- If your family already paid tax on the money when it was earned -

Have a rethink and get back to me; or don't.

I've just come across the following link.

I thought it may help clear things up:

http://www.abc.net.au/news/2018-12-13/one-third-of-australian-companies-pay-no-tax-ato/10614916

Dear Foxy,

If every company ploughed all of its pre-tax profits back into its business operations, plus write-downs on losses, depreciation, revaluation of assets, R & D, replacement, salaries, standard expenses, etc., how much tax should they pay ?

Interesting: ploughing back is just how Marx defined Capitalism: instead of blowing money on grandiose schemes and palaces and indulgent spending as in earlier economies (what he called primitive accumulation), any money earned (M) was put back into the business as extra capital (C), which in turn generated (through the exploitation of workers) more money (M) than before which in turn could be ploughed back into the business as more capital (C) and so on (capitalist accumulation).

After all, any capitalist who spent too much of his/her profits would soon go broke.

Love,

Joe

how much tax should they pay ?
Loudmouth,
they should pay tax on their profits after all other expenses !

Individual,

Of course: after all legitimate expenses. We all do that when we prepare or tax forms, deducting all legitimate expenses. Then we pay tax on what is left over. Fair enough.

Certainly, i don't support tax havens, and the 'creative skills' of accountants to divert income generated in Australia to those places, in order to avoid paying tax in Australia. I look forward to the day when, somehow, there is a world-wide moratorium on tax havens, when tax has to be calculated in the countries where income is generated. But there are too many vested interests everywhere for that to happen.

I wonder if any of Trump's companies are registered in tax havens. I suppose that will become clear if he ever releases his accounts.

Joe