Terry McCrann on the broken revenue promise

They also go a long way to explaining the controversial deficit levy — now to hit only people earning more than $180,000, and only for three years not the original four.

Frankly, the levy — and the return of fuel excise indexation — are not fiscally worth the political pain they’ve generated. Or the media hype.

Together, they’ll contribute less than $2 billion a year in a budget of over $400 billion — and then the levy disappears anyway. At least, we hope. It must.

Source.

Terry and I keep threatening to do lunch. When we do, first round is on him.

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9 Responses to Terry McCrann on the broken revenue promise

  1. pete m

    Terry would write better if he lost his bag of commas and tried writing a sentence without one.

    Half the time you have to re-read what he wrote just to keep track of two lines of thought merged in 1 sentence.

    Re point on raising revenue thru these measures, and the co-payment – it is bizarre how little benefit is seen from them yet the political capital cost has been enormous. Very very bizarre.

  2. Infidel Tiger

    Terry, if you had followed Sinclairs “hysterical” broken promise series, you would have known this 16 days ago.

    My prediction is that the tax take will be down. Unless you are a wage slave, the $180,000 cut off is pretty easy to avoid.

  3. Infidel Tiger

    When we do, first round is on him.

    As an economist I hope you are aware that it doesn’t matter who buys first, it is who buys last that dictates who got the better deal.

  4. wreckage

    46% personal tax, or 30% company tax, decisions, decisions, decisions!

  5. wreckage

    Sharing the pain! We see two constituencies who haven’t been paying enough tax: the wealthy, and the rural working poor. We’re going to end the quangos and tax evasions of those fucking farmhands and their profligate use of petrol to drive to work! But don’t worry, it will all be paid back in giant pork-barreling exercises in marginal suburban electorates.

    Unless the Greens get their way, in which case it will all be paid back in cowshit powered eco-buses meandering around the more desirable suburbs, with nobody on them.

    Hey Abbott, quick message from the bush: go fuck yourself.

  6. Frankly, the levy — and the return of fuel excise indexation — are not fiscally worth the political pain they’ve generated. Or the media hype.

    No, that’s right. It’s not.
    They broke a promise because – so they say – they were worried about Labor criticising them for punishing the poor. It’s not even really to pay off the debt, it is for appearances!

    But why do they care what Labor says? There is always an angle to criticise any policy. And inventing a new tax in order to escape political criticism? The mind boggles at the logic!!!

    The real explanation, I think, is that they believed in their hearts that it was true, and that the rich should in fact pay more tax. It’s the only explanation that makes sense: they actually believe in more redistribution.

  7. sabrina

    During your lunch or dinner, ask Terry to concede that Abbott lied before the election. Abbott will not lose respect if he tells truth.

  8. Senile Old Guy

    Terry McCrann (via Bolt):

    Higher and higher tax is the only real certainty in Joe Hockey’s first Budget, ostensibly built on slashing spending. Over the four years to 2017-18, tax revenues are projected to leap by just shy of a very neat $100 billion.

    By 2017-18 total budget receipts (mostly, tax) will equal 24.9 per cent of GDP — what is essentially, total national income — up from 23 per cent in the current 2013-14 year.

    The difference equates to an extra $36 billion of money flowing to Canberra in relative terms. In very clear-cut terms, Hockey gets two-thirds of his deficit elimination from (mostly, secret) higher taxes, just one-third from reduced spending.

    Even more strikingly, most of the revenue growth, over and above the normal growth in the economy, will come from rising personal income tax; and a huge part of that will be from the silent but all-too real tax increase of bracket creep.

    Over the four years net personal income tax revenues are going to leap by an astonishing $61 billion. All the other taxes, including company tax and the GST — and which right now rake in more than personal tax — will only increase by $38 billion.

    So much for taxes always lower under a Liberal government. Expect more surprises from the “no surprises” Abbott government as the details of the budget become clearer.

  9. Infidel Tiger

    Will Terry apologise?

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