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The Great Betrayal

 

“Either we wake up now or all our wealth will be given away at throw away prices!!”

 

I was just wondering how many Aussie will sell their personal goods for $32.18 to someone whom they know will sell them for $67.82 and earn $59 after tax.

 

And if you won’t do it in case it was your personal property, how can you let someone do this to your motherland? I can’t even stand the thought of someone doing it even though I wasn’t born here in Australia and Australia is an adopted home for me.

 

I am sure you won’t understand what I am saying, so let me explain in detail.

 

It’s been a fair while since I’ve been shouting hoarse at the top of my voice as to how Aussie Politicians are betraying Aussie interests. I guess it is time for me to make things more simple hoping perhaps this might wake up the Aussies to the calling of their motherland and my homeland.

 

If you remember just a year ago in 2010, when PM Ms Julia Gillard was pitching hard and fast for “Mining Tax”, she made an innocuous looking statement as to how mining companies are paying only 13% tax. In their defense the mining companies claimed as to how they pay royalties as well which all adds up to nearly 41%. If you don’t believe me you can Google it and check for yourselves. But is this the truth?

 

Well friends, nothing can be a whiter lie than this. It is throwing sand in everyone’s eyes. The royalties the mining companies pay are neither a part of their income nor a tax. The truth is, hold your breath:

 

“Royalty is the cost price of Aussie mineral wealth that belongs to the Aussie society, paid by mining companies to the Government. Royalty is the flat rate or the flat selling price at which the Government has sold away Aussie mineral wealth to private organizations for good.”

 

If it doesn’t make sense then let me give a very simple example. Suppose you have a car and you give it to a dealer for selling it for you. Royalty will be what the dealer will pay you after taking out his commission.

 

So how much is the cost at which the Aussie wealth has been sold and how much is money the private companies are making by selling Aussie wealth?

 

Well, let me answer this with a very simple mathematical calculation.

 

Let us say that:

X = Royalty being paid by mining companies

Y = Tax paid by Mining companies on their income

 

Equation I:

X + Y = 41 (The total figure mining companies say they are paying out of 100)

 

Equation II:

Y = 13% of (100 – X) The 13% tax mining companies are paying on their income after paying royalty to the Government.

 

Let me mention here that mining companies cannot include royalty in their income. If anything it will be their expense, and just like salaries and superannuation paid to the employees, running costs, equipment purchase, repair and replacement costs, and other miscellaneous expenses, does not form a part of their taxable income. And perhaps now you know why it doesn’t matter whether it’s the Government who runs mines or private organizations, the expenses and man power requirements will still remain the same, the only difference is, all the income (Profit) will go into Government account. How much difference will that make? Well read on and know for yourselves.

 

Getting back to our mathematics:

X + Y = 41                             (I)

Y = 13/100 (100 - X)            (II)

 

From (I):

X = 41 – Y                             (III)

 

(II) & (III) =>

Y = 13/100 [100 – (41 – Y)]

Or Y = 13/100 (100 – 41 + Y)

Or Y = 13/100 (59 + Y)

Or Y = (13x59)/100 + 13Y/100

Multiplying both sides with 100 gives us:

100Y = 767 + 13Y

Or 100Y – 13Y = 767

Or 87Y = 767

Or Y = 767/87

Or Y = 8.82

 

Putting this value of Y in (III)

X = 41 – 8.82 = 32.18

 

So out of every $100 income made by selling Aussie mineral wealth, the Aussies get paid only $32.18 while the Private organizations make $67.82 of which they only pay $8.82 as tax to the Government. This means that while Aussie public is getting only $32.18 from what belongs to them, the private organizations are making $59 after tax. You can make the figure $32.18 into $41 by adding tax but consider this:

 

Had it been Government who had been doing the mining on its’ own, the same number of people would have been employed for same salaries, it would have still cost the same in expenses to dig out the wealth, but the whole $100 would have returned to the Aussie public via Government.

 

Can anyone tell me the difference between $41 and $100?

 

Anyway, a bit different from this discussion but something which can also be mentioned here is a reply I wrote on the “Occupy Adelaide” website in response to a comment mentioned there. It is related to this topic in a way but it also touches a very important aspect about “Social Movements”. So here I share it with everyone today.

 

*****

 

Hi Michael,

 

There is no point in running a social movement if the City Council and Police are going to determine its’ agenda, way of protest and extent of democratic actions. In such a case the issues might as well be discussed at tea parties by housewives.

 

Social movements happen when people are not happy with something about the setup which they believe is in contravention to their interests, but unfortunately for them the representatives they have elected are not doing anything to fix it.

 

No social movement will get support from the arms of legislature like Police, Councils and other administrative authorities as a success of any such social movement invariably means a direct harm to personal interests of those running the government. If anything, these arms will only be used to suppress any social movement.

 

Why do you think businessmen and politicians are a hand in glove?

 

Businessmen fund elections to help their representatives win elections (Please note the use of word “their” as no matter how much the politicians may masquerade themselves to be our representatives just to get our votes, they never work for us, as will be proved by the following example that I am taking). So when their supported representatives come to power, they make decisions that promote their business interests. These representatives never make decisions that benefit the 99% who vote for them. To give you the example I talked about above, “Why do you think is there a mad rush to sell Australia into private hands like BHP?”

 

If the money generated as taxes from mining is driving the major chunk of Australian budget, imagine how much more money the Government can make if it were to run those mines on its’ own and then sell whatever is dug out and hence retain all the profit.

 

Do you think Government will need any less or any more men and equipment than what BHP and others need to dig out Aussie wealth? Do you think the Government cannot set up an own organization to do mining? And do you think the Government is not aware of this very simple thing? Imagine how much less tax the 99% will have to pay if all the money generated by mining was to go into Government kitty.

 

This is not the first time a mining site has been leased. It’s been happening since the Gold Rush era, the only difference is that at that time Australia was a British colony and anything found in Australia belonged to the British Empire which had every right to make profit out of it as it pleased.

 

Now if we were to start a movement against the Government to stop it from leasing mining sites to private companies, do you think Police will join us in our protest or the City Council will offer us water bottles and bananas? Let us not forget that any mining site once leased out is a permanent decision and our posterity has lost any rights whatsoever to it. That is, if every bit of Australia is leased out in the next decade, our children will have no option but to look at the faces of those who own mining companies and then curse us for doing nothing.

 

Letting Police or City Council decide the fate of Occupy Adelaide is akin to humiliating all the sufferings and good work done by those who are at the receiving end of police brutality in New York.

 

However, in current circumstances there was no point in going for a confrontation simply because it would have achieved nothing. Occupy Adelaide didn’t have any objectives to accomplish or an aim to achieve. In such a scenario going for a confrontation would have been a waste of time, energy and money, and would have meant suffering for no apparent reason.

 

Remember, social movements are not run to please Councils or Police or Governments or Administration. They are run to benefit the society and they invariably involve a clash with either or all of the above mentioned organizations.

 

Those who are scared of confrontation should not join social movements as they weaken those movements. And as long as you are not sure as to what, how and when you want to achieve, you should not organize a social movement. It disillusions public who loses its’ energy, fire and venom, not to mention its’ faith in such movements or any other like that which follow.

 

Sincerely,

Fatal Urge Carefree Kiss

Amanpreet Singh Rai

 

 

 

 

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