Sustainability of Labor’s tax policy is questionable

Chris Bowen seems to be proposing the removal of incentives for Australians to be self-sufficient in retirement.

Labor’s Chris Bowen and Bill Shorten argue that cash refunding of franking credits is not sustainable. Yet the credits come from corporate taxes already paid, not from a Labor government’s magic pudding.

It’s up to the health of corporations as to whether or not taxes and dividends will continue to be paid. If anything, the sustainability of corporate taxes and dividends under a Labor government is looking questionable. Based on Labor’s policies of high corporate tax rates, radical unionism and uncompetitive renewables, we might not have any industry in the future to pay taxes, let alone dividends.

Taking away the incentives for Australians to achieve financial independence and not be a drain on the pension purse is just the tip of the iceberg of what to expect from an aspiration-destroying Labor government.

Ron Hobba, Camberwell, Vic

Colleen Walker (Letters, 1/2) perfectly nailed Chris Bowen’s disdain for anyone other than unionists, Labor voters, Greens or the deceitful GetUp movement. Bowen seems to have no time for anyone other than this cohort of lefties. The great shame is that none of them will probably ever get out and achieve something for themselves but will continue to rely on the productivity of others.

Peter Curlewis, Yass, NSW

The Australian has effectively questioned the Labor Party’s policy to abolish cash refunds on excess dividend imputation credits. This has created great consternation among many seniors who have relied on dividend franking credits to supplement their income in retirement.

Not only is this going to rob pensioners of tax refunds due to them, but it is going to apply discriminately with members of self-managed super funds, Labor’s targeted milch cow, bearing the main brunt of the measure while members of industry super funds remain untouched.

This bias in Labor’s policy must be challenged as being unprincipled, inequitable, prejudiced and unfair.

David Taylor, Newport, NSW

Congratulations on your excellent editorial (31/1) analysing Labor’s franking credits proposal. Judith Sloan’s demolition of Chris Bowen’s policy errors (1/2) is also welcome. Missing from Bowen’s defence of his policy is any acknowledgment of the challenges faced by self-funded retirees in achieving a comfortable retirement. The loss of franking credits refunds will remove the incentive for many people to become self-sufficient in retirement and render the superannuation system somewhat pointless.

It would be churlish to add that the architects of this policy are unlikely to share the anxiety that this change will cause for many older Australians.

Rodney Dyson, Hawthorndene, SA

The indifference displayed by Chris Bowen and Bill Shorten towards the concerns of retirees over the axing of franking credits says a lot about what to expect from a future Labor government. Add to that other policy errors listed by Judith Sloan and we get the worrying picture of an overly ideological team that has problems balancing economic theory and practice.

The Coalition government is not perfect and has its work cut out to succeed at the next election. But it must rise to the challenge in order to save the country from the likely heavy-handed, high-taxing and enterprise-suppressing approach of the Shorten-Bowen team.

Michael Schilling, Millswood, SA

Chris Bowen can insult as many self-funded retirees as he pleases, secure in the knowledge that GetUp will be working hard for Labor in the federal election. GetUp intends to campaign for Labor, as well as helping independents running in Liberal seats held by ministers that would see preferences flow to Labor.

The message this left-wing group and the independents are peddling is that immediate action is needed to avert a human-induced climate change catastrophe. Like Labor, these people have no interest in a government’s duty of care to the Australian people. They regard this solemn obligation as an impediment to having their narrow agenda implemented.

Voters should wise up and reject the idea that adoption of the climate change cause, or any other cause now in fashion, is all that is required to responsibly govern the country.

Dale Ellis, Innisfail, Qld