corporate tax

The wealthy and corporations got a visit from Santa Claus, but the rest of us got Scrooged again on Budget night.

A windfall in tax income — derived in part from higher than expected royalties and corporate taxes in the mining sector, owing to higher prices for iron ore, coal and oil — provided ideal conditions for the government’s pre-election budget.

There was never a chance that Treasurer Scott Morrison would use this windfall to boost social spending — that just wouldn’t accord with the Malcolm Turnbull government’s “trickle down” economics.

Company profits have skyrocketed, while real wages have fallen. This is the harsh reality of the class war being pursued by Australia’s big-business rulers, as underlined by the latest Bureau of Statistics figures released on February 27.

In the last three months of last year, profits surged by a massive 20%, while wages fell by 0.5%. Over 2016, profits were up 26%, while wages grew by a mere 1%, less than the inflation rate of 1.5% — effectively a wage cut.

Scott Morrison and Malcolm Turnbull have delivered a budget for the billionaires. They claim that opposition to their tax cuts for the rich is “class warfare”. But the truth is that they are the ones waging naked war against the ordinary people of Australia.

People earning less than $80,000 — the large majority — get absolutely nothing from this budget. The top 10% of taxpayers get three quarters of the benefits while the top 1% get almost half (47%) of the tax cuts.

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