Labor talks, money walks

Caption: Bill Shorten’s economic policy (Artist’s Impression).

Labor governments are addicted to spending other people’s money and gouging anything which threatens to make a profit. New Zealanders dealing with the ham-fisted economics of the Ardern government will feel a shudder of recognition at the Shorten Labor policies. Increasing capital gains, cutting negative gearing, increasing welfare payments: Labor?s policies are threatening economic devastation for the sake of socialist fluff like ?inclusive growth?.

Business are also well aware of what a Labor government would mean for them. They?re taking pre-emptive action. Quote:

The guardians of some of the ?nation?s trillions of dollars in ?equities investments are adjusting their strategies in ?anticipation of a Shorten government, with the $360 million ?Mirrabooka fund yesterday paying a special dividend to shareholders six months early, ahead of Labor?s planned changes to franking credits.

Australia?s biggest companies, including industrial, mining and popular blue-chip stocks such as the four major banks and Telstra, sit on an estimated $45 billion in franking credits that could be ?released to shareholders before a future ALP government rips up the nation?s dividend imputation system. End of quote.

Franking credits are designed to stop the government double-dipping companies and shareholders. The dividends that companies pay to their shareholders are paid out of profits which have already been taxed. So shareholders receive a rebate for the tax paid by the company on profits distributed as dividends. Basically franking credits stop the double taxation of company profits as the tax paid at company level can be passed to the shareholder. Quote:

Last year, Bill Shorten unveiled his franking credits policy to claw back nearly $60bn over 10 years by abolishing cash refunds for excess dividend imputation credits.

The early dividend payment comes after a US investment bank predicted the valuation of shares in Australia?s biggest banks could be slashed by as much as 13 per cent if the ALP policy was implemented and cash refunds were ripped from investors. End of quote.

In anticipation of being gouged by Labor tax-and-spend, companies are moving to beat the ?wealth redistribution? scramble from the socialists. Quote:

Issuing its interim results yesterday to kick off the reporting season for 2019, Mirrabooka chief executive Mark Freeman said because of the uncertainty created by Labor?s dividend imputation policy, the fund believed it should pay special dividends now rather than wait to July when a Shorten government might change the rules?He said Mirabooka thought Labor?s policy was ?very grossly unfair for investors and trying to shift the playing field in favour of managed funds over self-?managed superannuation?. End of quote.

theaustralian

Investors are risking their own money. Labor, good little socialists that they are, are desperate to get their claws on other people’s money. They?re especially keen to gouge investors and instead pour money in their union mates? lucrative superannuation funds.

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