Oz Blog News Commentary

Articles from Harry Clarke

Comments on corporate taxes

March 16, 2018 - 14:45 -- Admin

Most people don’t understand what company tax is intended to do in Australia’s tax imputation system. The idea of imputation is to avoid taxing the same income twice. When a firm earns profits it is taxed on those profits at the company tax rate of 30%. If some of the after-tax profits are distributed as dividends to shareholders then the intention is not to tax this income a second time when it reaches the shareholder.

Investment advice

February 26, 2018 - 13:12 -- Admin

I am often asked to give financial advice to friends and colleagues partly on the grounds that I am an economist and partly because, it is supposed, I have a fair bit of experience in investing. My response is that I have no special expertise in making investment choices although I do have strong views on what should be avoided. 


Rational expectations?

February 16, 2018 - 10:23 -- Admin

A penny dreadful mining exploration company that I have followed in the past (to my regret) has made losses for each of the past 10 years.  It has several exploration sites that it owns or co-owns,  but none is anything close to a producing mine – indeed at some “promising” sites, only a single drill sample has been analyzed. Several of the sites are in Africa.   The firm is capitalized at about $40m but has cash at the bank of only about $500,000.

The Vietnam War

January 15, 2018 - 22:11 -- Admin

I watched the ten-part series on “The Vietnam War” (TVW) made available on SBS online.  This is a powerful series on this almost grotesque tragedy that influenced my own thinking greatly as a young man. I opposed the American run war and Australia’s participation in it during my final high school years and most of my years of study at university.

Fire and Fury

January 15, 2018 - 11:27 -- Admin

Michael Wolff’s “Fire and Fury” is a sustained attack on the Donald Trump presidency. Trump is revealed as a narcissist bumbler who repeats himself. A buffoon who is out of his depth for the job of being President. The White House staff he has surrounded himself with are a barely competent collection of factions competing for his attention but all of whom are individually aware of the extent of the Trump inadequacies.

Merry Christmas to All

December 25, 2017 - 09:44 -- Admin

Christmas is a celebration of what is guessed to be the approximate birth date of Jesus Christ. It is an important occasion in almost all civilised societies for both Christians and Non-Christians alike.

North East Link

December 5, 2017 - 11:55 -- Admin

The North-East Link Project in Melbourne seeks to connect the Western Distributor with the Eastern Freeway. There is much to this project – including a widening of the already-jammed Eastern Freeway – but the biggest feature of this project is its cost. Namely, $16.5b. Some claim the price could go as high as $21b.


The case for enhanced Australian company tax cuts: Modified re-post of an April 2016 post

December 3, 2017 - 19:10 -- Admin

This issue is again on the agenda because of the US decision to massively cut corporate taxes from 35 to 20% of corporate profits.  It is not the same intellectual case as for the US economy but many of the same issues arise.  The growth in the US deficit as a result of these cuts will be large and there are questions about the extent to which investment will increase given the relatively low level of US unemployment.