Opposition Leader Tony Abbott today twisted and turned but finally admitted what everyone already knew – that the Coalition would impose a great big new tax on business to pay for its Rolls Royce paid parental leave scheme.
Under Mr Abbott's scheme, businesses with a taxable income of more than $5 million will be slugged with a 1.5 per cent tax that will be passed on to consumers – at the supermarket, at the shopping centre, at the petrol station – and jack up the cost of living.
Mr Abbott is also opposing the Government's one per cent cut to the tax rate for companies and small businesses, so he can give a tax cut to his billionaire miner mates.
According to Treasury analysis, Mr Abbott's plans would see the manufacturing sector pay an extra $392 million in tax in 2013-14 and the retail sector an extra $270 million, sectors that are doing it tough outside of the mining boom fast lane.
On the John Laws program on Sydney radio this morning Mr Abbott, after being invited nine times to come clean about his plans, finally admitted that he would pay for his paid parental leave scheme by taxing business.
ABBOTT: But I accept John, I absolutely accept that the Paid Parental Leave scheme does have to be paid for, and it is going to be paid for by a levy–
LAWS: A tax.
ABBOTT: -which you'd prefer to call a tax. It will be paid for by a levy or a tax if you'd prefer that term on larger companies.
[2SM, 2 April 2012]
Mr Abbott's finance spokesperson, Andrew Robb, had far less trouble admitting the Coalition's great big new tax when he told Melbourne radio on 29 February that "We will fund the paid parental leave through a tax ... a levy ... on businesses, many of whom have their own schemes in place."
Mr Abbott has no interest in governing in the interests of all Australians. While he wants to give a big fat tax cut to the big miners and the big polluters, he is blocking tax cuts for small businesses and planning to slug companies that aren't in the mining boom fast lane with a great big new tax that will be passed on to consumers.
Mr Abbott can't be trusted to handle the economy if he can't even come clean about his plans to tax businesses.