Levy corporate monopolies, not the working people

Vanguard February 2011 p. 3

Prime Minister Gillard is looking to a tax levy to finance rebuilding after the floods. This is a device to suck money out of the people to provide new infrastructure for big business and to protect their bloated profits.

A tax levy plays on people’s emotions, and their generosity that has already been magnificently demonstrated. Instead of hitting hard-up ordinary people for rebuilding costs, the government should chase the really big dollars squirreled away by the mining companies and banks. A super profits tax on these parasites would win great support from the people, provided it was used to benefit the whole nation, not just the big corporations and mates of the politicians.

A poll conducted by the Australia Institute found 81% in support of a banking super profits tax, and 67% still wanting a mining super profits tax, in spite of Gillard’s diluted version.

As an example, Executive Director Richard Denniss quoted figures from the Commonwealth Bank’s annual report which showed interest expenses fell from $21.2 billion in 2009 to $20.3 billion in 2010; its interest expense as a share of liabilities fell from 3.6 to 3.3%; and its interest expense as a share of assets fell from 3.4 to 3.1%. Yet, the Commonwealth Bank outdid the others in jacking up interest rates and crying poor.

“These are their own figures,” said Dr Denniss. “It is interesting that none of the big four cite their own annual reports in their submissions to the (Senate) inquiry. They are telling their shareholders about the good job they are doing keeping interest expenses down while telling the public and the Parliament their interest costs are rising. What’s good enough for the miners should be good enough for the banks.”

Also sand-bagging their profits are a host of insurance companies sliding their way out of flood-damage claims. Like the big mining monopolies and banks, they are gorged on wealth and fenced off by armies of lawyers adept at writing fine print.

Sure, the government will need money to support rebuilding efforts, but let’s start with these fat cats for a change. After all, it was working people’s taxes that paid for much of their infrastructure in the first place, plus government concessions that still allow them to get away with paying less tax than the rest of us.

Gillard hopes to ingratiate her government with the big US, European and local monopoly capitalist corporations that dictate western imperialism. She plays the same tune as the most conservative and right-wing economists with their obsession over a budget surplus. This is their trick to justify social spending cuts and low wages to keep the people on the back foot. The initial cutbacks will hit jobs in the school building program, the green car innovation fund, solar energy schemes and other carbon emission reduction projects.

The floods in Queensland may have closed down much of the coal production, but the shortage of coal has been reflected in higher prices and profits are still on the way up. Gillard has not only promised to construct new roads, railways and ports for the coal monopolies, she has knocked out the competing alternative energy industries.