Bill Clinton's famous campaign line "It's the economy, stupid" that helped unseat US President Bush snr. in 1992 should be written in permanent ink on whiteboards in Green's meeting rooms. The Australian Industry Group has launched into the Greens for their allegedly naïve 'Robin Hood' tax proposals that appear to ignore the enduring truism of "It's the economy, stupid." Churchill had a more witty way of putting it.

"The Greens' latest left field proposals on Australia's taxation arrangements is simply an attack on the prosperity of everyday Australians who benefit from our companies doing well," says Innes Willox, Chief Executive of the national employer association Ai Group. 

"The proposal to gouge Australian businesses who do well through investments and products that meet market needs, and provide jobs, is naïve populism pure and simple. Australian workers and retirees who, through their superannuation accounts, invest in our local companies to generate wealth, will also suffer. 

"The proposal is a frontal assault on our financial system which must be both successful and stable to underpin our economy. It is also a direct attack on business investment that creates the jobs and innovation we need.

"The proposal reflects a complete lack of understanding of how our economy functions and how long-term prosperity is generated.

Green in more than name only?

"Unsurprisingly, their plan is based on clear misunderstandings of the current tax system; basic principles of taxation; and the workings of an economy that draws extensive benefits from its vibrant private sector. 

"Unleashed, the Greens would introduce not one but two new taxes on the shareholders of Australian companies: a minerals resource rent tax and an 'excessive profits' tax.  

"These two new business taxes would reduce the capacity of businesses to employ and invest. They are also and actually a tax on the retirement income of all Australians.   

"Once again the Greens have proposed policy changes that would leave Australia and Australians poorer and with lower living standards," says Willox.

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Footnote: None other than Winston Churchil once observed:

“I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.”