Contractionism and the fear response - International Social/Political

Man is just another social animal with a very pronounced contractive fear response to match his status as the dominant planetary species. Lesser mammals only display the social fear response in the presence of other animals. Man, however, is able to display this response in any circumstance, including reactive responses to inanimate objects such as texts and other culturally invested objects.

A recent radio report of a religionist describing a multitude of behavioural prescriptions and prohibitions actually prompted the writing of this short paper. My experience only extended to standard terrorising (socialisation) during my childhood, I somehow avoided additional terrorisation from religionists though I was bashed by a Methodist religious teacher for doing more work than required for one class – I had time while waiting for classmates to complete the assigned work so I proceeded to the next chapter. I received a closed fist bashing from an adult when I was 10 years old for excelling in my academic studies! Nevertheless, I found it fascinating to listen to this person, who was thoroughly convinced that another man’s fiction was his reality – astonishing!

Surely the anthropomorphic character of God/s gives the game away? Gods are depicted with human behaviours and very human failings, which betrays their very terrestrial origins. They are all too human regardless of their comic book ‘powers.’ No God is able to affect even a blade of grass let alone intervene in the affairs of men (or mice). If the world as we know it ends the causes will be natural phenomena and/or the disruptive influence of humankind on the planet.

It became extremely clear that the fear response of cowering beasts was active in the behaviour of this person, who rambled endlessly and with great alarm over the consequences of ignoring various food and other prohibitions – extraordinary!

It seems the primitive frightened beast that emerged from the forests and caves to become the dominant species continues to carry irrational, primitive, fear responses to this day. Aside from immediate physical danger the fear response is not only unnecessary but also a liability in today’s world.

A few astute individuals through the ages intuitively understood the needs of human social animals AND THE PRICE they were willing to pay for membership to the group. Today’s subservient, shit-eating populations bear testimony to our primitive past by accepting the largest disparities and inequities since the time of the Pharaohs.

The proposition that some humans are entitled to more than others would seem to be based on the pack animal FEAR RESPONSE – nothing more mysterious than that!

In Australia entire election campaigns are run on FEAR. The incumbent leader squeals incessantly on the dangers of allowing the ‘management’ of the economy to fall into inexperienced hands! Yet his track record borders on criminal mismanagement. Never before has Australia seen such huge disparities in wages and the distribution of wealth. Transnationals are engaged in the most rapacious exploitation the nation has ever experienced; hundreds of billions in wealth are extracted from the nation and virtually nothing is returned to the people or society. Some corporate CEOs receive salaries of $35m/year while other citizens receive less than $35K!

Many citizens are forced to enter into huge debt merely to cope with daily expenses. Historically, this ‘economy’ is the most unfair the nation has seen since convict days -- definitely nothing to skite about, yet the incumbent government constantly repeats the fear-laden line that somehow equity equates with catastrophe.

The real fear is of course the discovery of government incompetence and corruption in overseeing the most unfair economy the nation has ever known. However, the pack animal population continues to be manipulated by the same fears that plagued them in the dark forests of prehistory.

The millionaires' factory guide to cutting tax

[Allan Moss is the CEO (of the Macquarie Group) referred to above on an annual salary of $35m. His relationship with John Howard extends to supplying the Internet connection to the Prime Minister’s offices -- the security of this situation is absurd. Such matters should be left to the appropriate government agency. If you had any doubts regarding Howard's grossly unfair feudal economy or who he really serves -- then DO YOUR RESEARCH! Ed.]

by Stuart Washington
SMH - November 19, 2007 - 11:52AM

The average NSW wage earner on a salary of $61,500 also pays a higher effective tax rate - 26 per cent - than Mr Moss was able to pay on his options payout.

THE chief executive of Macquarie Group, Allan Moss, was able to pay tax of 25 per cent on a $6 million options bonus he received last year, a lower rate than Sydney bus drivers pay on their overtime.

The tax treatment available to Mr Moss, the highest-paid chief executive in Australia, with a salary of $33.5 million last year, means he can pay tax on his options gains at nearly half the top income tax rate of 45 per cent.

More than 2000 A-listers on the staff options plan at Macquarie Group - or "the millionaires' factory" - can choose not to pay income tax on the bulk of the gains they may receive from their options.

The complex but effective tax treatment has been revealed in a staff options handbook released by the bank to the stock exchange last week, showing how staff can use a little-known section of the 1936 Income Tax Assessment Act.

Mr Moss's ability to pay tax of 25 per cent on his options gains compares with the 30 per cent tax rate a Sydney bus driver must pay on any overtime.

"For someone who represents people on base rates of pay who rely on overtime and penalty rates to build it up, this is almost obscene," the secretary of the NSW Rail Tram and Bus Union, Nick Lewocki, said. He said overtime could account for about 20 per cent of a driver's salary of about $50,000.

The average NSW wage earner on a salary of $61,500 also pays a higher effective tax rate - 26 per cent - than Mr Moss was able to pay on his options payout.

A spokeswoman for Macquarie Group would not comment on the tax affairs of individual staff members.

The section 139E exemption allows an up-front payment when the options are granted, converting the gains on options the staff receive as part of their salary into a capital gain rather than income.

Once this payment is made, the gain on options payouts can receive the 50 per cent discount to top tax rates available under the capital gains tax regime if assets are held for longer than a year.

As a consequence,wealthy executives in companies that meet their performance hurdles are being taxed at rates substantially below what they would have paid if the gains had been treated as income.

Macquarie Group is not alone in being able to benefit from the tax exemption. Executives in options plans in other companies are able to use it to convert their options gains from income into capital, and enjoy discounted capital gains tax liabilities.

The Herald has previously calculated that executives at Westpac and ANZ could enjoy tax rates of 29 per cent and 28 per cent on their options payouts.

Other share plans are designed so options gains for executives are treated under the discounted capital gains tax regime from the start, without using the exemption.

The Macquarie options plan is available to more than 1200 associate directors, 600 division directors and 240 executive directors. Options give an executive the right to buy shares for a set price at a specified date if certain performance hurdles are met.

Executives make a gain on their options if the company meets the performance hurdles and the share price beats the set price they were issued at.

Because of the complexity of options plans, the beneficial tax treatment of executives' options payouts receives little scrutiny.

Options are not a one way street: if a company fails to meet performance hurdles, options can lapse. In the case of Macquarie Bank, the low-tax nature of the options payouts has been enhanced by the strong performance of the shares.

© 2007 Fairfax Digital

Topics

Other Press

Cleaves on Disc/Stick