From today’s AFR:
Shadow treasurer Chris Bowen said he was concerned about risks to Australia from the slowing world economy, so Labor must implement all its $200 billion-plus in pledged tax rises to arm the federal government with a bigger fiscal “buffer” to counteract any global downturn.
That’s right. The Labor Party wants to take money out of the economy so that they can put money into the economy.
It sounds sensible given that the Liberal Party has announced that next year’s budget will be in surplus, all off the back of increased tax revenue, but care must be exercised in the economy because house hold budgets are under pressure.
If only households could have taxing powers, powers to take money from others by forces, so that they can continue to spend in the manner they have grown comfortable with.
Perhaps the risks to Australia are not from the slowing world economy but rather the accelerating government taxing and spending.