Only mean-spirited people would begrudge paying more tax to support the disabled. Right? Well that’s the story the Prime Minister’s Press Office is pushing on Twitter.
All revenues or moneys raised or received by the Executive Government of the Commonwealth shall form one Consolidated Revenue Fund, to be appropriated for the purposes of the Commonwealth in the manner and subject to the charges and liabilities imposed by this Constitution.
So all revenue raised goes into a single big pot of money that then gets used to pay for all the school halls and insulation and what ever else they can think up in Canberra. So by increasing the so-called Medicare levy the government have simply increased taxes. In this case an additional income tax with a slightly different tax base to the larger well-known personal income tax.
The fact of the matter is this: The new tax increase will not cover the cost of the NDIS. The government is going to have to increase debt to pay for the NDIS – this is because the government simply refuses to cut any wasteful expenditure. As Peter Costello told the ABC last night:
I wouldn’t be introducing it in this form at this time. The budget’s in deficit. To fund it you’ll have to borrow more money. Wouldn’t you say, seeing as we’re in deep deficit, seeing as we can’t afford to pay for all the spending we’ve currently got on the books, why should we actually spend more? I’d actually be looking at ways in fact to reduce the spending now, maybe to put it – put some money aside in the future. I wouldn’t be sitting down and saying we’ll go into a new spend which could be when it fully flowers something like $8 billion a year.
It’s not like Australia doesn’t already spend nearly $24 billion on disability care.
That’s just the Federal government.
So the point isn’t whether people think we should spend money on the disabled or not, the question is how is the additional expenditure on the disabled going to be financed?
Update: Stella Young at The Drum is worth while reading on this topic.