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.