Thoughts on tax cuts

I have an op-ed in the AFR today talking about the government’s latest thought bubble.

Spending is just off 2009-10 GFC stimulus levels. The government brags about the increased powers it is giving regulatory agencies and the Australian Tax Office. NGOs are waging war against the mining industry while a royal commission is threatened against the financial industry. With a bipartisan anti-business sentiment originating in Canberra and infecting the rest of the country, it is unsurprising that growth is sluggish and the budget mired in deficit.

No amount of tax cuts in isolation is going to overcome deliberate sabotage of the economy.

 Inspired economic leadership that sees business and enterprise as the driving force of a prosperous economy is what is required. That means tone down the anti-business rhetoric. Restrain the regulators. Cut red tape. Cut green tape. Cut taxes. Cut spending.

It is only within a coherent and comprehensive economic framework that tax cuts will drive economic growth and return the budget to surplus. It is an open question whether any of our current crop of politicians can deliver on that framework.

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22 Responses to Thoughts on tax cuts

  1. Marcus Classis

    It’s a Captain Clusterf*ck thought bubble.

    He will find away of having to backflip on it and present The Accused Rapist with a victory.

    Bet on it.

  2. Just Interested

    That means tone down the anti-business rhetoric. Restrain the regulators. Cut red tape. Cut green tape. Cut taxes. Cut spending.

    And I want a pony for Christmas.

    It is only within a coherent and comprehensive economic framework that tax cuts will drive economic growth and return the budget to surplus. It is an open question whether any of our current crop of politicians can deliver on that framework.

    It isn’t an open question as both the majors intend to ‘return’ to surplus over the identical time horizon, relying on precisely the same economic estimates from the same source – the Treasury.

    Only a complete realignment of the Australian political parties will lead to any difference.

    Obviously agree with the article, though.

  3. Uniparty Arson.
    While the building burns down, the Uniparty Arsonists loot the place while the owners try to put the fire out.
    The problem is that the police and the fireys are controlled by the Uniparty.
    Like the alcoholic, we have to hit Venezuelan levels of social destruction before the proles do a Ceaușescu.

  4. mh

    You must be bitterly disappointed in Malcolm Turnbull.

  5. RobK

    Bravo to you Sinc. I’m amazed how oblivious our betters are to the blindingly obvious.

  6. Chris

    Another un-considered, un-reviewed talk bubble pops out from the PM.

    Emergency Powers might be the answer; intern the regulatory sector and government activist sectors as enemy aliens.

  7. Baldrick

    A tax cut for middle Australia, how generous.

    Meanwhile in Canberra the Stupid.Fucking.Liberals still want to add an extra 0.5% Medicare Levy to help fund the NDIS.

  8. H B Bear

    Jebus Snic. How did that make it to the pages of Stuchbury’s leading daily anti-business business pamphlet? I wouldn’t be waiting by the phone for a follow up column.

  9. Kneel

    “…help fund the NDIS.”

    NDIS is an insurance company subsidy in all but name. The insurers scammed their way out of paying for long-term health impacts, pocketed the $ and said they were top blokes for not increasing premiums – for a year or so anyway.

  10. Chris:

    Emergency Powers might be the answer; intern the regulatory sector and government activist sectors as enemy aliens.

    I had a brain fade when I read that, Chris. The sentence processed as “Emergency Powers might be the answer; intern the regulatory sector and government activist sectors as Battery Hens.
    Need coffee.

  11. Squirrel

    The mooted changes to the $37k and $87k brackets are tokenistic, at best, but if they were presented as a first step towards the re-introduction (what’s 40 years between friends….) of the indexation of the income tax scales, that could be something of a genuine reform.

    It would put a little of the rhetorical onus back on the advocates of endlessly growing government spending, and serve as a general reminder that a “tax cut” is not a gift for which there should be humble gratitude, it is just a reduced gouge. As part of this, there might also be a decision to stop pretending that all government spending is “investment”.

  12. Dr zfred Lenin

    This cut of course will not cause spending cuts ,expenses will rise ,we can always borrow more money <the socialist solution ,rudd lives on .

  13. Exit Stage Right

    Sinc, I don’t think this was “the governments latest thought bubble”, but more likely the PM’s latest brain fart (after consulting with Lucy who no doubt recommended to The Potentially Great One that he throw the plebs a few crumbs). Morrison didn’t appear to know much about it when the big announcement was made, but now says it has been a work in progress for some time. Absolutely useless the lot of them (including the unelected Lucy).

  14. Sinclair Davidson

    You must be bitterly disappointed in Malcolm Turnbull.

    Not at all. He hasn’t worked out as I had hoped but to say I’m bitterly disappointed would be an overstatement. I was bitterly disappointed in Abbott though.

  15. BorisG

    Culturally and manners wise I used to like Turnbull more but now I must say I am disappointed and on balance would prefer Abbott. He is much more genuine person who stands for something. Turnbull appears to believe in nothing and just sails where the wind takes him, making sure he is not the next to be eaten alive by the media.

    And he is such a sleek guy, it is impossible to even know what he thinks about anything.

  16. Mark A

    BorisG
    #2562902, posted on November 23, 2017 at 1:50 am

    Culturally and manners wise I used to like Turnbull more but now I must say I am disappointed and on balance would prefer Abbott. He is much more genuine person who stands for something. Turnbull appears to believe in nothing and just sails where the wind takes him, making sure he is not the next to be eaten alive by the media.

    And he is such a sleek guy, it is impossible to even know what he thinks about anything.

    You are right about Turnbull, an empty suit. Abbott is a lost cause for me, I well remember his pursuit of Hanson, standing there in his then fashionable long overcoat denouncing her party and her alleged wrong doing. But the most telling for me was his meek capitulation. He had an overwhelming majority and set on his backside for month doing nothing. Caved in on 18C. Was it on advice of Peta Credlin? We shall never know.

  17. dauf

    You must be bitterly disappointed in Malcolm Turnbull.

    Not at all. He hasn’t worked out as I had hoped but to say I’m bitterly disappointed would be an overstatement. I was bitterly disappointed in Abbott though.

    Turnbull has turned out just as expected…he may be a good business predator but has always seemed incapable of leading anything; perhaps because he can’t think of anyone but himself.Pretty easy to see in advance.

    I can understand disappointment in Abbott. He should have known better but fell for the old trap of trying to appease the enemies (lefty media), who were never going to support him. The Trump approach of fighting back on the media etc works far better, or even John Howards approach of just bypassing the gatekeeping idiots in the media (like ABC) and just going to talkback etc

  18. Rabz

    Sinc – I don’t read the AFR on principle, but would like to make a couple of observations.

    The Waffleroach is talking about hypothetical tax cuts that will never be introduced, while Teats Peanuthead intends making a “temporary” income tax increase introduced by Abbott permanent, along with introducing a whole bunch of other lovely new taxes and tax increases.

    This disgraceful pack of foreigners, whores and quislings have lost their social license to exist, as far as I’m concerned. The sooner they’re all “accidentally” incinerated in a “mysterious” parliament house fire or generously administered a one way “holiday” in some shipping containers of peace, the better.

  19. Rabz

    The Waffleroach has surpassed even my subterranean expectations of him.

    A truly heroic effort.

  20. mh

    It is only within a coherent and comprehensive economic framework that tax cuts will drive economic growth and return the budget to surplus.

    There is a structural deficit, but very few people either in parliament or the media want to recognise the fact. They don’t even use the term anymore. The Morrison/Turnbull team – aka The Dangerous Brothers – decided to ignore the structural budget deficit and attempt to grow the economy at all costs, thinking that everything would then take care of itself.

  21. Catfeesh?

    Well, I’m curious. Sinclair, you say turnbull hasn’t been a bitter disappointment. I can’t think of anything he has done that hasn’t been bitterly disappointing. Help me out, what has he done well?

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