Most people don’t seem to 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.
Articles from Harry Clarke
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.
Not everything that Tony Abbott says is nonsense. A fair bit of his verbal output is suspect but his views on immigration make sense. The claims of his critics often do not. Particularly when they are related to unwarranted claims of an anti-multicultural bias.
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.
I watched the ten-part series, “The Vietnam War” (TVW), now made available at SBS online. This is a powerful analysis of this almost grotesque tragedy that influenced my own thinking greatly as a young man. It changed me into a person who thought politically. 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.
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.
The arguments by Willem Buiter on the possibility of an exuberance-induced global recession seem reasonable to me. Stock and property markets are exuberant, particularly in the US while bond markets are moving into recession because we all know that interest rates are rising and will continue to rise.
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.
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.
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.