Parkinsons’s disease

If you keep a Keynesian as Treasury secretary you are going to get Keynesian advice. If you take advice from a Keynesian, you will never get the economy working properly again.

I have just seen this story at Andrew Bolt and it is a report of a speech given by the Treasury Secretary, Martin Parkinson, on what the government needs to do. Here is how it starts.

Treasury boss Martin Parkinson says the goods and services tax will have to be boosted or broadened if the budget is to have any hope of returning to surplus.

He must be from the same school of advisors who told the first President Bush to break his “no new taxes” promise. Paying for public service waste with higher tax revenues is both an economic loser and even worse, a political loser.

Stop fixating on the deficit. Do the specific things that make the economy work better. Lower public spending. Reduce regulation. Fix up IR. Encourage private industry in every way you can.

If you start raising taxes you will be out on your ear at the next election.

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39 Responses to Parkinsons’s disease

  1. I am the Walrus, koo koo k'choo

    Stop fixating on the deficit. Do the specific things that make the economy work better. Lower public spending. Reduce regulation. Fix up IR. Encourage private industry in every way you can.

    Yes, precisely.

    A doctorate from Princeton, thirty years at Treasury, and yet he still doesn’t get the idea of ‘dead weight loss’.

  2. DrBeauGan

    Abbott losing the next election would be a bonus for Parkinson.

  3. Infidel Tiger

    Abbott losing the next election would be a bonus for Parkinson.

    No great loss for anyone else either. If you are going to elect socialists, might as well have the full blown type. At least you can bribe your way to wealth under an ALP government.

  4. JC

    On this matter alone, strictly in this matter, I think both Parkinson and the Wombat Whisperer are correct. Don’t anyone sharpen the blade to the guillotine and hear me out.

    Unless, unless the Libs cut spending, that is cut shit out like the NBN, NDIS and fire lots of people there is no hope we can return to surplus without a tax hike. What these two bozos are basically suggesting is that the spending side is etched in stone and that clearly is bullshit.

    The libs need to have a serious conversation with the electorate and explain we simply cannot afford bullshit like NDIS without material hikes in taxes and all the other crap the Liars Party imposed and let the cards fall where they may. Raising taxes isn’t courageous. What’s courageous are spending cuts. Let them fucking whine and scream, just trust the electorate to make the right call. Failing that they lose the next election and let the Liars Party hike taxes.

  5. candy

    The libs need to have a serious conversation with the electorate and explain we simply cannot afford bullshit like NDIS

    How JC – look at the power of the unions and GetUp. How does this serious conversation work?

  6. Ubique

    Start by sacking half the Commonwealth public service. It will save an absolute motza and won’t cost so much as a single vote.

  7. ar

    Need to increase GST… Treasury were so banging on about this during Krudd/Gillard/Krudd…

  8. Kingsley

    Focus on spending cuts that land predominantly in Canberra. There are no coalition seats to lose there and everyone outside of Canberra has no sympathy for the joint

  9. mundi

    Is anyone body really surprsied that increased tax will happen? The portion of wealth taken by the government has gone up continuously. Heck, even under Howard it went up.

    You can safely have higher taxes (and a larger percentage of wealth taken by government) so long as total wealth out grows it so net wealth still increases in real terms.

    The Abbott government will be lucky to cut $1b in outlays, let alone doing anything allowing a reduction in tax.

  10. mareeS

    candy, “How does this serious conversation work?”

    Firstly by shouting out loud: “Australia cannot afford the NDIS.” Repeat, “Australia cannot afford the NDIS.”

    And then ask individual Australian taxpayers to put their hands up to fund it.

    There’s the future of the NDIS.

  11. JC

    Candy

    After the audit commission we’ll know the damage along with the projections. It’s then when they need to break spending promises.

    The public aren’t stupid and will understand that it means either higher middle class taxes or spending cuts.

  12. JohnA

    As I said at the Bolt site, Parkinson is blind to the uselessness of his remedy.

    Increasing the GST will be wonderful for the States, but it won’t make a blind bit of difference to the Federal Budget deficit unless Federal grants to the States are reduced by an equivalent amount. And just how many States will agree to that?

    COAG will become a bun-fight over estimates (guesses or bets, really) of the growth in the economy and whether the increases in GST will over-compensate for the lost grants.

  13. candy

    After the audit commission we’ll know the damage along with the projections. It’s then when they need to break spending promises.

    Tony Abbott won’t break a promise , jc.

  14. Ant

    Don’t you love how the public service operates?

    Leftists win an election and then busy themselves stuffing it with like minded imbeciles pretending that they’ve created jobs and improved society.

    Then adults resume power and the instant they talk about reducing it to even the previous levels it’s a case of “Oh my God! Savage cuts to public services are going to doom the nation!!!”

  15. WhaleHunt Fun

    Fund the NDIS by taxing Greenpeace, selling the ABC, SBS and increasing fines on unions for disobeying court orders by a factor of a thousand, seizing the assets of all illegal entrants and their families and forcibly repatriating them naked and penniless to Syria or whatever cesspit is currently the least safe location, and finally, sell all public assets in Canberra, cancel medicare and defund the universities. Only a small start but would help. And the repatriations would be fun to watch. You could sell the broadcast rights.

  16. WhaleHunt Fun

    Tony never promised to not use the ABC staff as a commercial organ bank. Their livers are worthless but their must be some saleable parts.

  17. Old School Conservative

    Not only is Parkinson advocating boosting/broadening the GST, but also he and Hockey appear to have rolled Abbott with his “temporary reprieve from axing”. (http://www.theaustralian.com.au)
    It appears Hockey needs this Keynesian by his side as budget time draws closer. I am beginning to worry that Tony will not slash spending by anywhere near enough.
    I really liked JC’s analysis that the spending side is etched in stone. It appears to be all elected politicians’ mantra.

  18. Old School Conservative

    Good call Ant - stuffing it (the PS) with like minded imbeciles pretending that they’ve created jobs.
    They then compound the lie by claiming credit for any productive jobs created by the private sector.

  19. Gowest

    Its all preparation for a “mandate” at the next election – something along the lines of “If youse want NDIS, GONSKI, REIT, Welfare etc” then you must elect us with a mandate to increase the GST to XX%.

  20. Andrew

    Here’s what I don’t get. The scumbags who Like the Senior Labor Figure’s page when he posts inane shit like “Share to reject Abbott666′s cuts.”

    There’s mathematically only 3 possible outcomes. You MUST vote for one of them, by definition (assuming we don’t attempt supply-side reforms, which I assume based on the apparent electoral hatred of WorkChoices666).

    1) Cutscutscuts totalling $70bn a year
    2) Tax increases of $70bn a year
    3) Running up deficits of $70bn a year

    I assume people don’t want c) in perpetuity, given how strenuously the Liars pretended to reject their own ultra-deficit policies and promise surpluses.

    Therefore the people rejecting Cutscutscuts MUST be saying “We’d like to pay an extra $3500 p.a. poll tax for every member of my family, including dependent children and age pensioners.”

    I’d like to see Hockey666 announce a $3500 p.a. poll tax, or $14k every year per family of 4, every year for the next decade. Watch social meeja go nuts. Then an hour later at the end say “No, this entire speech was a satire – that’s what the Liars have left us with.” Really stick it up them.

  21. Ripper

    It appears Hockey needs this Keynesian by his side as budget time draws closer. I am beginning to worry that Tony will not slash spending by anywhere near enough.

    Yep , I am starting to think that Hockey is a bit too “wet”. That his Wife is a banker is a worry also as he would be getting lobbied on the pillow to organise a ETS..

  22. Fisky

    He must be from the same school of advisors who told the first President Bush to break his “no new taxes” promise. Paying for public service waste with higher tax revenues is both an economic loser and even worse, a political loser.

    The only reason why Leftist advisors advise non-Leftist governments to do the “courageous thing” and raise taxes is to ensure that non-Leftist governments are voted out and replaced by Leftist governments. There’s nothing more to it than that.

  23. red breast

    Whatever happened to the idea a decade or so ago of abolishing income tax and the associated deductions and lodgments and just getting the banks to collect 0.01% as a turnover tax for individuals trusts, businesses and companies. No avoidance by international companies, no late payments, no dodgy deductions and claims, much less paperwork for individuals and businesses and no need for a considerable number of taxation department staff. Oops and less accountants – maybe that’s why it never got beyond an idea.

  24. Aussieute

    Martin Parkinsonism is telling porkies.

    GST has no relationship to the Federal budget, it’s distributed to states in total.
    Unless he wants the Feds to access this tax stream by changes to the legislation.

  25. I am the Walrus, koo koo k'choo

    Note that Parkinson’s call for higher GST appears only a few days before the Senate election in WA, where they despise the current unfair distribution of the GST and would see any increase redistributed to the mendicant states.

    A great way to ‘spike’ the government’s support over there.

  26. Aussieute

    +1 Read Breast

    A one percent tax on all withdrawals from financial institutions would raise about $470 billion dollars annually – twice the amount of the current Federal tax system.

    A one percent debit tax would eliminate every other tax, including tax returns – ending the need for a 20,000-person ATO staff and the intimidatory tactics this government department employs to enforce the current biased system.

  27. 2dogs

    A one percent tax on all withdrawals from financial institutions would raise about $470 billion dollars annually

    No. This is pure fantasy.

  28. sabrina

    Parkinson is saying what his bosses want him to say, for a quick fix.
    Joe is right on actions, removing lap band surgery from medicare rebate. Did he get one done recently?
    Now he should remove tax deductibility from all donations to all organizations, charities or lobby groups, all of them.

  29. HRT

    Parkinson was the head of the Department of Climate Change before coming to Treasury. Reason enough to do the opposite of what he proposes.

  30. entropy

    What the hell? Has the Cat suddenly been infested with the financial acumen of one nation losers?

  31. Sir Fred Lenin

    Good housekeeping,no borrowing money,pay your debts,cut taxes so you have less income ,so you cant spend abolish luxuries ,like alp/ green thought bubble ideas,too many public servants,giving away money to u.n. bludgers anf foreigners.cut useless spending, And our “leaders” and teir mates in the PS and law trade take a 50 per cent cut in payand perks! I can see that happening under the present system !

  32. Up The Workers!

    Sir Winston Churchill expressed it best when he said:

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

  33. .

    There’s mathematically only 3 possible outcomes. You MUST vote for one of them, by definition (assuming we don’t attempt supply-side reforms, which I assume based on the apparent electoral hatred of WorkChoices666).

    1) Cutscutscuts totalling $70bn a year
    2) Tax increases of $70bn a year
    3) Running up deficits of $70bn a year

    Or you inflate the shit outta everything if 3) doesn’t do so anyway.

    1) Of course is the only responsible choice.

  34. The Pugilist

    Good call Ant – stuffing it (the PS) with like minded imbeciles pretending that they’ve created jobs.
    They then compound the lie by claiming credit for any productive jobs created by the private sector.

    Old school conservative, you nailed it. But you did forget to add that the public service (or the politicians for that matter) never accepts any responsibility for what gets destroyed or doesn’t get created in the first place – investment, wealth and jobs – as a result of their actions. Actions that make us all collectively poorer.
    I think the only way change will occur is if there is a seismic shift in federal financial relations. The commonwealth needs to give a whole heap of taxing/revenue raising powers to the states and then just compltely vacate a vast array of policy areas. Close down entire departments and abolish a large range of programs. Then the states will be forced to reassess the role of government and we will see competition emerge. Competition between jurisdictions to attract labour and capital and therefore a revenue base.
    While there is only tinkering around the edges, we will continue to see creeping growth of the commonwealth and a gradual expansion of the public sector.
    I am pessimistic that any politicians, federal or state, have the requisite cajones (or indeed philosophical underpinnings) to take this on.

  35. Robbo

    Oh sure let’s bump up the tax take to cover our overspending. That’s going to be a winner, just as it has been in the past. The trouble is that the bulk of those who vote at elections swallow this sort of left wing bullshit because it is being pumped up by dills in the media who have no idea of how to tie up their shoelaces let alone provide intelligent commentary on the national economy. I have just overheard Neil Mitchell on 3AW (my wife insists on having his programme mumbling away in the background) telling his listening audience that he thinks the economy can be fixed by increasing the GST to 12.5% and as compensation other taxes should be cut. What a stunningly self satisfied up himself blowhard no-nothing dill that guy is. Nary a mention of cutting back on the bloated mess we refer to as the public service and the myriad of so-called programmes that cost a bloody arm and a leg and which in the vast majority of cases we do not need. Has anybody in government heard of zero base budgeting? I’m going to finish this rant right now because I’m sure my blood pressure has gone through the roof just thinking about this shambles.

  36. Gab

    If I were PM … I’d start with: Arts* and climate funding of any sort ought to be the first things that get defunded given the national books are so bad. Then defund the AHRC . Put the NDIS aside for a few years and leave the GST as is. Gonski is gonski and education an health handed back to the states. Also, some of the taxes that were to be done away with upon the introduction of the GST haven’t, so get rid of those taxes.

    Then on day 2 …

    *Includes ABC and SBS.

  37. Menai Pete

    Just a sneaky way to create an anti-Abbott Government controversy in the lead up to the WA Senate election.

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