PUNCH Magazine weekly

Issue 40

PUNCH Magazine
The Official Weekly humourous and satirical publication of The Whig Party

Issue 40

PUNCH Magazine weekly

PUNCH Magazine weekly Tuesday June 12 2018, 9:05 AM

MIKE JESSOP INDEPENDENT WHIG PARTY KAWANA together we will change the course of history

It's that time of year again - yes it's tax time - that time when on top of calculating presenting and printing off invoices for every single transaction regardless of the amount ( average production cost 22.5 minutes staff time )

plus $3.80 for printer hardware ink cartridges consumables eg paper envelope stamp and labour for just producing a printed even window envelope and doing all this

Say 1,000 invoices per annum = $3,800 to print off plus staff costs to produce invoice 0.375 hours @ $140 / hour chargeout ($70 actual cost ) for a small business 375 hours @ $140 total $52,500 pa ( $26,250 at cost)

Plus 16 hours per quarter just reporting current GST THEN doing annual tax return for personal and business tax - total 100 hours reporting tax ( excluding accountants fees) 100 hrs @ $140 = $14,000 chargeout ( $7,000 actual cost)

Chargeout is the alternative cost to doing something that actually generates income ( wealth taxation) instead of wasting so much time accounting for and reporting taxation

This excludes stock taking and valuation $1,120 for 8 hours Stock taking @ $140 another activity exclusively required for tax reporting and a complete waste of staff time and productivity

So for the average small business the real cost in terms of productivity and wealth generation excluding cost of external accountant if used is

  • $3,800 printing and sending
  • $52,500 producing invoices
  • $14,000 reporting tax
  • $1,120 for Stock taking
  • Total $71,420 In real terms cost to the business and therefore the ( national) economy to the uninitiated known as income tax (IT) and the goods and services tax (GST)

    There now follows a description of the Whig Party method of GGST That would replace both Income Tax AND GST as well as generate more income given that $200 billion clears through the banks every day at 0.5% credit and 0.5% debit absolute total 1% ie $2 billion automatically without any paperwork at all this means saying goodbye to even the $5 dollar note given that even welfare is distributed through the banks without any cash

    So to report your tax ( and keep an eye on the banks reporting) this would be the procedure

    Download your years bank transactions in CSV spreadsheet format online

    Create / open a spreadsheet eg GOOGLE SHEETS free online SUM total the relevant date rows ie 1st July 2017 to 30th June 2018

    Enter the following formula eg. in the column B containing credits and debits to your account rows 282 - 586


    To give you the absolute value of all transactions say $575,012.08 gross for an MP so GGST ( Gifts Goods and Services Tax for the year would be $2,875.06 for that account)

    Total time 20 minutes at $140 per hour $46.66 for each account say Credit Card, Savings Account, maybe Superannuation account Total time 1 hour and 20 minutes $186.66 and alternative cost to the business economy TOTAL $186.66

  • Compared to $71,420 under the old system
  • Three weeks holiday to every business owner and lots more hair
  • Frees up our accounting community for preparation of quotes AND real cost accounting and who are complicit and largely responsible for fear of that knock on the door from the ATO

    The revolutionary Whig party upon the introduction of such a tax would give complete amnesty to tax demeanour past and present and save further costs of prosecution trial and imprisonment - even pardon to existing offenders

    The above figures are based on a State or Federal MP's approximate salary excluding expense claims ( back handers illegal party donations bribes - perish the thought!?) Of which they must be in receipt of legal remuneration of course

    The rewards in terms of productivity are plain to see not to mention creativity rest and relaxation and release of the handbrake on the economy caused by the the annual quarterly and even monthly slowdown as a result of the current system

    The only downside I can see, if any, is there would be no banknotes to carry my portrait on - I guess I could accept there might be some way onto the coinage of the realm!?

    May God bless you

    Together we will change the course of history

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    PUNCH Magazine weekly

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