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Articles from Harry Clarke

Comments on corporate taxes

March 16, 2018 - 14:45 -- Admin

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.

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,  “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.

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.

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