Much of the public discussion on Prime Minister Kevin Rudd鈥檚 proposed tax reforms 鈥 made in response to the Henry tax review 鈥 has centred on the projected 40% tax on 鈥渟uper-profits鈥 in the mining industry. Most people probably agree that the big mining multinationals could afford to contribute a lot more to the public purse.
The mining bosses, however, don't agree and have declared war on the tax. Indeed, mining magnate Clive Palmer has stated he will spend 鈥渢he rest of his life鈥 campaigning against the tax because he 鈥渨ants to create jobs鈥. Treasurer Wayne Swan responded: 鈥淐live Palmer acts in the interests of his own fat profits, he doesn鈥檛 act in the interest of the Australian people.鈥
It鈥檚 bizarre when you find yourself nodding in agreement with pro-capitalist politicians.
The mining industry鈥檚 fear campaign about the tax is, of course, a complete crock. The Construction Forestry Mining Energy Union said the tax 鈥渄oesn't stop any current mine or proposed mine being profitable for their investors鈥. So really Clive, there鈥檚 no need to worry.
Less public discussion has centred on what the Henry tax review exposes about the existing Australian tax system.
Professor Julian Disney, director of the Social Justice Project at the University of New South Wales and convenor of TaxWatch, wrote on May 4: 鈥淭he Henry tax review acknowledges, albeit without fanfare, the rampant 鈥榳elfare for the wealthy鈥 which lurks within the Australian tax system.
鈥淪uperannuation tax concessions cost the federal budget about as much as age pensions. Housing tax breaks cost at least five times as much as public housing and rent assistance.
鈥淚f these tax concessions were paid as cash, like social security, their size and damaging impacts would be better understood.
鈥淭his under-cover, upside-down welfare system hugely boosts the wealth of people who are already wealthy, while depriving public revenue of billions of dollars for investment in hospitals, schools, transport etc to benefit middle and lower-income Australians.鈥
Please help GLW in the fight to shift the tax burden away from working people and on to the rich. We need to struggle not only against the shameless, profits-driven approach of the mining bosses, but also the underlying injustice of the tax system that provides so much welfare for the wealthy.
By making a donation you鈥檒l be investing in human solidarity, social justice and the struggle for such change. , or direct deposits can be made to Greenleft, Commonwealth Bank, BSB 062-006, Account No. 00901992. Otherwise, you can send a cheque or money order to PO Box 515, Broadway NSW 2007 or phone in a donation through on the toll-free line at 1800 634 206 (within Australia).