Ads partially causing cost of living crisis
Ads partially causing cost of living crisis
The issue
Ads are contributing to the cost of living crisis as government spending is a key denominator of the causes too inflation. In Australia alone, companies receive tax reductions based on how much they spend on advertisements due to it being a "cost of operation" and this is not properly mandated.
Multi million/billion dollar companies are receiving huge discounts on their tax rates due to add creation the government does not seem to acknowledge the fact that most of these companies in the digital fields also make up that "cost of operations" in other ways such as providing space for advertisements themselves. As well as that when they advertise for themselves on their own platforms they can determine any said "cost of operations" they wish by charging themselves, essentially causing a loop hole to deduct their taxes by whatever amount they wish.
this cost is then pushed onto the consumers that are already struggling with other bills and costs of living. If these multi million/billion dollar companies actually paid their fair share in taxes then people of the lower and middle income classes would not have to front this bill in their own taxes.
I personally believe that these companies should not receive any discount from advertisement costs. I believe the only companies that should receive any kind of discounts on advertising are the small Australian businesses which are struggling to stay afloat for themselves.
any PTY/LTD or worldwide implemented business or corporation should not be allowed to benefit from this reduction.
think of your local big grocer stores, I'm sure you have noticed prices on the shelves going up over the years. You know why they go up? Its because these companies look at the money they are spending on "costs of operation" and they want that money back today! Not when tax time comes round, thats just the gravy to them. Most products in these stores already have huge profit margins pushing into the 1000s percentile rates and this already makes it hard enough on the costs of living. To then give these companies a tax rebate based on advertising costs is just wrong.
Then look at digital companies like Google and you will understand just how outrageous this truly is. They made nearly $355,000,000,000aud in advertisement revenue alone in 2023 alone yet only payed just under $100m? Look at these numbers side by side remembering you need to do that number 10 times to each decimal! thats
$355,000,000,000 to
$100,000,000
to get $5b alone is already 50x the amount of tax they paid. 5 goes into 355 to 71 times then times 71x50 and you get 3550 now remember thats 3550 times $100m. See the issue? This is not even 1% tax on the amount they generated from just ads in 2023 alone. In fact it is only 0.028% OF THE TOTAL PROFIT THEY GENERATED FROM ADS ALONE!
not to mention their entire platforms generated income!
yet Australians are slumped an average tax rate of 28.54% and marginal tax rate is 37.0%. This does not include any deductions/expenses/offsets/Medicare levy to claim. On what? An average of $89,000 per year salary? So out of that $89,000 you only actually get $64,000 a year? Now how is this a fair economy?
Thats an average of $25,000 per year that 20.5 million Aussies looses out on each year! Which equates to $512,500,000,000 in tax generated by the working class in Australia.
googles ad revenue alone is nearly 70% of that generated by 20.5m people! Not to mention other companies like meta, amazon, and other tech giants!
Time for a reform on this i think and a fair one. Not just a 2% tax cut! Time for these companies to pay their fair share to reduce the cost of living!
1
The issue
Ads are contributing to the cost of living crisis as government spending is a key denominator of the causes too inflation. In Australia alone, companies receive tax reductions based on how much they spend on advertisements due to it being a "cost of operation" and this is not properly mandated.
Multi million/billion dollar companies are receiving huge discounts on their tax rates due to add creation the government does not seem to acknowledge the fact that most of these companies in the digital fields also make up that "cost of operations" in other ways such as providing space for advertisements themselves. As well as that when they advertise for themselves on their own platforms they can determine any said "cost of operations" they wish by charging themselves, essentially causing a loop hole to deduct their taxes by whatever amount they wish.
this cost is then pushed onto the consumers that are already struggling with other bills and costs of living. If these multi million/billion dollar companies actually paid their fair share in taxes then people of the lower and middle income classes would not have to front this bill in their own taxes.
I personally believe that these companies should not receive any discount from advertisement costs. I believe the only companies that should receive any kind of discounts on advertising are the small Australian businesses which are struggling to stay afloat for themselves.
any PTY/LTD or worldwide implemented business or corporation should not be allowed to benefit from this reduction.
think of your local big grocer stores, I'm sure you have noticed prices on the shelves going up over the years. You know why they go up? Its because these companies look at the money they are spending on "costs of operation" and they want that money back today! Not when tax time comes round, thats just the gravy to them. Most products in these stores already have huge profit margins pushing into the 1000s percentile rates and this already makes it hard enough on the costs of living. To then give these companies a tax rebate based on advertising costs is just wrong.
Then look at digital companies like Google and you will understand just how outrageous this truly is. They made nearly $355,000,000,000aud in advertisement revenue alone in 2023 alone yet only payed just under $100m? Look at these numbers side by side remembering you need to do that number 10 times to each decimal! thats
$355,000,000,000 to
$100,000,000
to get $5b alone is already 50x the amount of tax they paid. 5 goes into 355 to 71 times then times 71x50 and you get 3550 now remember thats 3550 times $100m. See the issue? This is not even 1% tax on the amount they generated from just ads in 2023 alone. In fact it is only 0.028% OF THE TOTAL PROFIT THEY GENERATED FROM ADS ALONE!
not to mention their entire platforms generated income!
yet Australians are slumped an average tax rate of 28.54% and marginal tax rate is 37.0%. This does not include any deductions/expenses/offsets/Medicare levy to claim. On what? An average of $89,000 per year salary? So out of that $89,000 you only actually get $64,000 a year? Now how is this a fair economy?
Thats an average of $25,000 per year that 20.5 million Aussies looses out on each year! Which equates to $512,500,000,000 in tax generated by the working class in Australia.
googles ad revenue alone is nearly 70% of that generated by 20.5m people! Not to mention other companies like meta, amazon, and other tech giants!
Time for a reform on this i think and a fair one. Not just a 2% tax cut! Time for these companies to pay their fair share to reduce the cost of living!
1
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Petition created on 19 October 2024