It is interesting how the experts change their minds. At the start of the year there was all this ‘positive’ vibe going on about how the stock market was going to crash through the 6,000 point barrier by the end of the year as it clawed its way back to 6,800 where it was before the GFC hit back in 2007/2008.
Now the ‘experts’ are saying that the market could fall below 5,200 in October due to the financial woes currently being experienced by Australia at both the federal and state levels. In fact there is one theme from the experts during September claiming that a third of the listed companies are teetering on the end of financial failure.
There is also the Reserve Bank’s well reported concerns that the real estate market is overheated and telling banks to tighten up lending policy. The Reserve is signalling that the next interest rate move has to be upwards and that this is likely early in the new year.
And now there is this concern that the top 200 companies in Australia only pay about 10 percent in tax, when the corporate rate is supposed to be 31 percent from the first dollar of profit. But these companies have all kinds of tricks and moves that allow them to play with the profit reported or deductions applied that then brings their effect tax rate down to 10 percent.
Some corporations are managing to pay just 3 to 5 percent tax.
While companies in Australia are making bigger profits than ever they are paying less adjusted tax than they were paying ten years ago!
I pay 35 percent tax of every dollar I earn. How can this be fair?