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Super profits tax needed to offset rising inflation

Media Release
Nick McKim 27 Jul 2022

Greens Treasury spokesperson, Senator Nick McKim, has responded to the release of today’s inflation figures.

“The government should introduce a corporate super profits tax to help ease cost of living pressures, including by fixing up the Petroleum Resource Rent Tax (PRRT).

“And they should use the additional revenue to provide cost of living support, such as by putting dental into Medicare and making childcare free.”

“COVID disruption and energy price hikes are driving inflation globally.

“But inflation is also being driven by corporate profiteering.

“The share of national income going to profits is at record highs.

“But wages’ share is at record lows and workers are being asked to brace for further real wage cuts.

“Workers are not to blame for higher inflation but they are the ones feeling the pain.

“In particular, new homeowners and renters will be hit hard by expected further increases in interest rates.

“The Treasurer needs to be more than a reporter of bad economic news.

“Fiscal policy needs to be deployed to mitigate monetary policy overreach. 

“The Treasurer needs to heed the advice of the likes of Joseph Stiglitz and Rod Sims and tax excess profits to help cushion the impact of inflation.

“In particular, global gas giants are taking the Australian public to the cleaners while also fuelling the breakdown in the climate.

“On paper, the PRRT is already a windfall profits tax.

“But it is broken and being exploited, and the government should fix it.”

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