There is little doubt the Rudd government panicked in 2008 and spent far too much money stimulating the economy. Even Lenore Taylor and David Uren admit this point in their book Shitstorm (pg. 216).
it is hard to resist the conclusion that the government spent more than was needed, no matter how reasonable its actions appeared at the time.
Now when the government does need money at short notice to rebuild infrastructure they have to introduce new taxes to do so.
THE Federal Government will impose a one-off flood levy of 0.5 per cent for middle-income earners, Prime Minister Julia Gillard says.
A levy of 0.5 per cent will be applied on taxable income between $50,001 and $100,000 and a levy of one per cent will be applied on taxable income above $100,000.
…
How you will be affected by the federal government’s one-off flood rebuilding levy:
A levy of 0.5 per cent will apply on taxable incomes between $50,001 and $100,000.
A levy of 1.0 per cent will apply on taxable incomes above $100,000.
Anyone earning less than $50,000 will not pay the levy.
Flood victims will not pay the levy.
A person earning $60,000 a year will pay just under $1 extra per week under the levy.
A person earning $100,000 a year will pay just under $5 extra per week under the levy.
The levy will apply only in the 2011/12 financial year.
It is expected to raise $1.8 billion.
There is some good news; a lot of pie-in-the-sky green programs have been cut or deferred.
Green Car Innovation Fund – AXED
Fund provides assistance to companies to enhance the research and development of technology to reduce fuel consumption and greenhouse gas emissions of motor vehiclesCleaner Car Rebate scheme – AXED
“Cash for clunkers” program was already deferred until later this year
Rebate of $2000 was to go to new car purchasers who scrapped their pre-1995 passenger vehicleCarbon Capture and Storage Flagships and Solar Flagships schemes – DEFERRED
Program accelerated the development and demonstration of carbon capture and low-emission energy technologiesSolar Hot Water Rebate scheme – CAPPED
Demand management system to be introduced
The scheme helps householders replace old electric storage hot water systems with solar or heat pump hot water systemsGreen Start program – AXED
Grants scheme to replace failed Green loans programGlobal Capture and Storage Institute – FUNDING CAPPED
The institute brings together public and private sectors to exchange know-how and expertise on carbon capture and storage.
I don’t know if the Federal government has thought hard enough about this, the letter page of the Herald Sun today indicated a lot of anger.
It’s not too hard for higher-income earners to shift taxable income around between two financial years, assuming of course the government is true to its word and axes the levy after one year.
Sleetmute
27 Jan 11 at 4:06 pm
How about a tax for people who end their sentences in “eh?”? It’s constitutionally valid, on paper!
.
27 Jan 11 at 4:23 pm
Yeah! They can afford it! Evil wealthy capitalist pigs!
Ev630
27 Jan 11 at 4:45 pm
What do the Fair Pay and Global Warming Institute have to say on this?
.
27 Jan 11 at 4:46 pm
I just heard Gillard at the NPC say that the levy is being a ‘mate’ – and the ‘Australian way’.
Honestly, I almost vomited.
Gillard is far worse than Rudd.
Far worse.
C.L.
27 Jan 11 at 5:03 pm
Sold the house on 22 Dec, cancelled insurance, missed the flood by about a metre, but no power for 5 days so copped the $2800 handout which helped pay for the 2 litres of milk that went off and a few bags of ice and the hire of a genset for 2 days.
Good to see I will miss out on having to pay the levy to pay for the levee.
I do, however, have a pressing need. A Pony. In pink if you please. And bin night is Wednesday. If you don’t mind.
Pickles
27 Jan 11 at 5:09 pm
Fair request, Pickles.
Why can’t the government buy everyone a pony?
Why?
C.L.
27 Jan 11 at 5:13 pm
As much as I oppose the levy, history suggests the money will be put to good use and wisely spent. Buying Pickles a pink pony would be a good start.
Infidel Tiger
27 Jan 11 at 5:15 pm
I must add Lenore Taylor to my list of expert authorities.
rog
27 Jan 11 at 5:21 pm
Rubbish! This is the most persistent myth that still remains as a hangover from the days of gold-backed currencies. If the government wants to spend money to rebuild infrastructure, all they have to do is let the contracts and write cheques (or tell the contractors’ banks to increase their account balances) when the accounts fall due. There is no necessary link between taxes received and government outlays. FIAT currency governments can create money at will.
The only argument for increasing taxes to pay for the reconstruction would be if the government thought the reconstruction spending would increase aggregate demand to a level that would cause excessive inflation.
Mother Hubbard's Dog
27 Jan 11 at 5:27 pm
Doesn’t kick in until $50,000 and would be about $250 extra in the year for those on $100,000? People can live with that, I think. It wasn’t your average flood in terms of area affected, I’m sure.
steve from brisbane
27 Jan 11 at 5:29 pm
levy is being a ‘mate’ – and the ‘Australian way’.
Often touted by some as the ‘mateship tax’. Nothing short of emotional blackmail to sell the concept of the tax.
Gabrielle
27 Jan 11 at 5:37 pm
jeez Duck Bottom is insufferable She really is worse then Rudd.
As I said the whole reason for the tax is not for rebuilding infrastructure. It’s rebuilding the lost Labor constituency in Queensland then have some money left over to support the deficit.
Fuck i can’t stand them.
JC.
27 Jan 11 at 6:22 pm
“People can live with that, I think. It wasn’t your average flood in terms of area affected, I’m sure.”
So what, flood damage is a specific risk built into lots of prices, including land. I like to choose who I help. The govt should only pay for infrastructure repair.
“She really is worse then Rudd.”
Jeez, that’s going a bit far jc. She’s a dud, not a sociopathic dud.
pedro
27 Jan 11 at 6:34 pm
Cool then you want to pay my part? I will put my share towards all my insurance premiums I pay each year.
Although not unprecedented.. floods like this were common knowledge were they not?
OnTheBus
27 Jan 11 at 6:35 pm
And if it’s not too much, how about dropping the stamp duty on the next place I buy or paying the rent for a year or two if I can’t find a place that has solar panels on the roof or a water tank? I see this as an opportunity for enhanced sustainability in so many areas. Mates.
Pickles
27 Jan 11 at 6:42 pm
Mates don’t borrow money from mates and not give it back.
Infidel Tiger
27 Jan 11 at 6:48 pm
Ev630, shifting taxable income is what I plan to do; I wasn’t defending the levy! I am also stopping my charitable donations for 2011-12 and longer if the levy persists. I don’t see the poor helping me any time soon, so screw them.
Sleetmute
27 Jan 11 at 6:49 pm
Don’t be shy Pickles: Your pink pony will also need a stable. That’s what mates are for.
Gabrielle
27 Jan 11 at 6:52 pm
Good point Sleet. I donate 5% of my gross each, so I will also be lopping off the levy from that. If any of the charities whine, I’ll send them of to figure it out with SwanDive and Duck bum.
JC.
27 Jan 11 at 6:57 pm
oops each year.
JC.
27 Jan 11 at 6:57 pm
Has the Prime Fanta Pants donated any of her own money to flood appeals?
Infidel Tiger
27 Jan 11 at 6:59 pm
Does people realize that the biggest issues these incompetent morons have had since just before Rudd was thrown out of office is tax. That’s all they’ve fucking talked about.
JC.
27 Jan 11 at 7:04 pm
ALP 101:
Strategy #1: Tax and spend.
Strategy #2: See Strategy #1.
End of lesson.
Gabrielle
27 Jan 11 at 7:08 pm
If I may be so bold as to engage in a bit of self-promo for my latest harebrained scheme, just set up http://www.stopthelevy.com as an online petition against it, if anyone would be interested in swinging by and signing…
Tim Andrews
27 Jan 11 at 7:11 pm
Sure thing Tim. I’ll sign anything against these incompetent turds.
Why don’t you organize a Tenors letter like the usual collection of dullards do when they’re peddling some haibrained idea…. Like the one Andrew Leigh signed supporting the Lurch/Rudd insulation fiasco.
JC.
27 Jan 11 at 7:17 pm
oooh jeez… Not Does… Do people realize…
JC.
27 Jan 11 at 7:18 pm
Sorry, Tenors letter?
Tim Andrews
27 Jan 11 at 7:32 pm
You know like the 3 tenors. They were hauled out every time labor needed a stamp of authority for a numb nut scam.
I always referred it the Tenors letter in honor of the 3 Tenors.
JC.
27 Jan 11 at 7:35 pm
Sorry, I didn’t realize that a significant proportion of the reaction against the levy was that it was made by a woman. As for deaf people, where they have a signer communicating the message, the alpha males could have a fella talking in blokey talk. Hoges would be good, he comes across as a ‘mate’ and he has a way of reducing complex issues into simple blokey stuff, like nuh and yeah.
rog
27 Jan 11 at 7:43 pm
That’s a good idea Tim, by levy you mean dams?
rog
27 Jan 11 at 7:44 pm
Someone fire up the Enigma machine, rog is trying to communicate.
Infidel Tiger
27 Jan 11 at 7:48 pm
You don’t see the irony in the nonsense put forth in this thread IT?
Perhaps you need to see a seeing eye doctor.
rog
27 Jan 11 at 7:52 pm
Somehow I can’t see Hoges being interested in spruiking for a tax.
Yobbo
27 Jan 11 at 7:55 pm
Where do you get this woman thing from? The levy is shithouse no matter who dreamt it up.
Infidel Tiger
27 Jan 11 at 7:55 pm
Where do you get this woman thing from?
rog is a Marxist feminist with a chip on her shoulder. Anyone who hasn’t figured that out by now has been asleep for the past 2 years.
daddy dave
27 Jan 11 at 8:30 pm
Yea, quodger what does gender have to do with it you intellectual oaf?
lefties used always criticize Howard’s appearance, which is why I think what’s good for the goose is also good for duck bum.
In any event the only person I’ve seen touting it on the Tele has been Swandive unless you’re uncertain about his gender, yea?
Your rant didn’t make sense, which is no shock seeing you never finished high school.
JC.
27 Jan 11 at 8:35 pm
Tony Abbott vindicated…
Gillard’s flood levy in political limbo.
C.L.
27 Jan 11 at 8:42 pm
This sets a dangerous precedent; where any disaster can be used to increase taxation. Typical of a borrow and spend and tax regime. Supporters of this government should be ashamed.
Big Dumb Fu
27 Jan 11 at 8:44 pm
rog
27 Jan 11 at 8:53 pm
DD says that anybody who hasn’t understood his delusion has been asleep for two years -another symptom of his delusion.
Maybe you need to buy a train set.
rog
27 Jan 11 at 8:55 pm
Rog, you perverted liar. McKibbin is against the levy:
http://www.theaustralian.com.au/national-affairs/flood-rebuilding-levy-will-backfire-rba-director-warwick-mckibbin/story-fn59niix-1225995128027
You were much more fun when you were a free market lesbian.
Infidel Tiger
27 Jan 11 at 8:59 pm
No, you are calling McKibbin a liar.
rog
27 Jan 11 at 9:14 pm
“Perhaps you need to see a seeing eye doctor.”
“Maybe you need to buy a train set.”
?
This is schtick, right ? Chanelling who, Zoolander ??
Myrddin Seren
27 Jan 11 at 9:32 pm
No, not Zoolander. Quodger’s reference is Zoo Magazine.
Tell him, Quodge.
JC.
27 Jan 11 at 9:44 pm
Maybe you need to buy a train set.
already got one. plenty of other toys too. note the moniker.
daddy dave
27 Jan 11 at 10:07 pm
The carbon tax is in limbo. The mining tax is still in limbo. And this flood levy might end up in limbo. The ALP seems to be slow at learning that taxes are not popular.
TerjeP
27 Jan 11 at 10:34 pm
They’re not in limbo at all. They’re waiting for the senate composition to change when One nation-greens get the balance of power in July.
JC.
27 Jan 11 at 10:41 pm
And that Keneally kiddie down south of the border has worn out a set of rosary beads praying for more rain. A lot more.
Pickles
28 Jan 11 at 2:03 am
“Doesn’t kick in until $50,000 and would be about $250 extra in the year for those on $100,000? People can live with that, I think. It wasn’t your average flood in terms of area affected, I’m sure.”
Considering the rest of my taxed income thoroughly wasted, how about no, moron?
.
28 Jan 11 at 10:03 am
“Sorry, I didn’t realize that a significant proportion of the reaction against the levy was that it was made by a woman. As for deaf people, where they have a signer communicating the message, the alpha males could have a fella talking in blokey talk. Hoges would be good, he comes across as a ‘mate’ and he has a way of reducing complex issues into simple blokey stuff, like nuh and yeah.”
I couldn’t give a shit if Gillard had two dicks. We’re overtaxed and they waste a lot of revenue. No new tax.
.
28 Jan 11 at 11:25 am
Shame that a “seeing eye doctor”, otherwise known as an optometrist, can’t treat some forms of myopia. I think the illegal immigrants have some good ideas about experimental medical/millinery procedures to alleviate foot-in-mouth syndrome that might help you and us, rog.
Tim – I support the idea of a petition against the levy, but don’t agree with the reasoning your website lists. It’s the gross dishonesty, series of misrepresentations and the ALP’s track record of utterly breathtaking money mismanagement and waste that has me saying “Hell no!”
Mr. Papaya
28 Jan 11 at 11:06 pm
Why can’t we fund this with a tax cut like they do in America?
Dim Lair
29 Jan 11 at 4:39 am
Gabrielle, you are wrong about ALP 101.
#1 is spend, borrow, tax, tax and leave a huge deficit on being kicked out of office.
#2 see above
Eyrie
29 Jan 11 at 9:08 am
Mr. Papaya – what do you think is dishonest about it?
I agree the argument made is rather basic, but I don’t think it misrepresents the consequences of the levy at all?
Tim Andrews
29 Jan 11 at 9:14 am
Well…Australia’s tax system is so inefficient that might just work!
Cutting Government spending would also add to net productivity growth. The Government sector is always a laggard.
Well said, Dim.
.
31 Jan 11 at 9:32 am