Expect more and more tax increases under a Labor Government

According to Phil Coorey in the AFR:

Shadow treasurer Chris Bowen has put his colleagues on notice by warning them not to ask for more big-spending measures should Labor win the election.

Speaking to AFR Weekend after releasing Labor’s policy costings, Mr Bowen said any new spending proposals would only be considered if they were accompanied by savings measures.

Hahahahahahaha.

Given that, in a post-Swan world, tax increases are savings, Australians will have to expect more tax increases to come.  And not just inflation.  There will be no end of new spending proposals from rebuilding the school hall generation to specially salary supplements for preferred gender and race groups (as long as they are in a union), to possibly even a program to send an Australian to the moon to lay NBN fibre.

Just wait for them – income tax increases, company tax increases, capital gains tax increases.

And don’t forget all those subsidies as Labor likes to refer to them – the income tax free threshold – gone; franking credit refunds for charities (but not unions or political parties of course) – gone, tax deduct-ability of employee related expenses (except union fees of course) – gone; tax deduct-ability of charitable donations – gone.  These are subsidies after all.

In the minds of the Labor economic brains trust, Chris Bowen, Jim Chalmers and Andrew Leigh, as long as the Commonwealth is collecting less than 100% of GDP in tax, there is still scope for “savings”.

And for those in doubt, the following list reported by Tim Colebatch, probably provided by the Labor economics brains trust, lists their proposed budget savings:

• End dividend imputation cheques to non-taxpayers: $14.2 billion
• Scrap the Coalition’s stage 2 tax cuts: $13.63 billion
• Reform tax breaks for trusts: $7.79 billion
• Cut tax breaks for superannuation: $5.42 billion
• Budget repair levy on higher incomes: $3.8 billion
• Close negative gearing and increase capital gains tax: $2.79 billion
• Cut spending on consultants: $2.64 billion
• Close tax breaks for multinationals using tax havens: $1.53 billion.

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18 Responses to Expect more and more tax increases under a Labor Government

  1. stackja

    Taxes on taxes soon?

  2. pbw

    Cut spending on consultants: $2.64 billion

    Naah.

  3. Jock

    Only $1.5 billion from a crack down on MNCs ? Thats not even $400m pa!! What a joke.

  4. MACK

    The fundamental problem with socialists is they do not understand human psychology – in this case the assumption that tax changes will not cause behavioral change.

  5. Squirrel

    As I noted in a comment on another thread yesterday, I think a Labor-Green government is highly likely to pursue the idea of a land tax on the family home – perhaps as part of some sort of revenue deal with the States and Territories. It’s unfinished business from the Henry report, and is glibly appealing to politicians who want to be seen to be doing something about housing affordability, while securing (in the face of a shaky housing market) the revenue streams currently drawn from property transaction taxes.

    For many struggling households, it would be just about the last straw, but I doubt very much whether that will stop the “progressive” policy zealots from pushing this idea.

  6. Ƶĩppʯ (ȊꞪꞨV)

    In the minds of the Labor economic brains trust, Chris Bowen, Jim Chalmers and Andrew Leigh, as long as the Commonwealth is collecting less than 100110% of GDP in tax, there is still scope for “savings”.

    covfefe!

  7. C.L.

    Hahahahahahaha.

    Ahahahahahaha.

  8. nb

    Please Mr Government, what is a tax increase? I thought the money I have belongs to you, and that you would be decreasing spending by allowing me less of it.

  9. Nob

    It’s already happening in the UK:

    https://www.thetimes.co.uk/article/sunday-times-rich-list-wealthy-prepare-to-flee-corbyn-britain-9l25snfx0?shareToken=efba2524a997d06a534ead19c544f794

    https://www.thejc.com/comment/leaders/labour-pains-1.474361

    property entrepreneur vowed to “give up” if Corbyn became prime minister: “What I do takes risks. A hard-left government would remove the reward that justifies those risks. Spending five years on a beach would be a better use of my time.”

    I assume same is happening in Australia with the prospect of Shorten/Green/CFMafiaEU getting (even more) control.

    Just Australian journalists are too dopey to look for the story , or they think entrepreneurs are all criminals deserving punishment anyway.

  10. Robber Baron

    More tax under Labor as opposed to less more tax under LNP.

  11. TBH

    When these ALP turkeys get in (I’m absolutely convinced that they will) we are in for the mother of all tax fleecings. Well among those who pay tax anyway.

  12. TBH

    The only hope will be a hostile Senate and I will be voting strategically to help that happen.

  13. Peter Greagg

    As a retired Older Australian, I have re-weighted my share portfolio away from Australia and towards the US.
    As Henry Ergas and Pincus showed in the Oz (13 May), when the ALP take over, Australia will have the highest taxes on savings in the world.

    I don’t know why the ALP wants me to dis-invest in Australia, but the obviously do!

    I don’t think I will be Robinson Crusoe.

  14. Colonel Crispin Berka

    Latest vid by The Juice Media (green/left operatives) is very relevant here.

    https://www.youtube.com/watch?v=bleyX4oMCgM

    Still not clear how one can not waste one’s vote in this election, since it still comes down to which of two major parties to put 2nd-last, and they both suck.

  15. Karabar

    “The illusion of freedom will continue as long as it’s profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way and you will see the brick wall at the back of the theater.”
    Frank Zappa

  16. PB

    “End dividend imputation cheques to non-taxpayers: $14.2 billion”

    End dividend imputation cheques to EX-taxpayers: $14.2 billion, to award the proceeds to non-tax payers.

    Fixed.

  17. Mindfree

    End dividend imputation cheques to EX-taxpayers: $14.2 billion, to award the proceeds to non-tax payers.

    Fixed.

    Good summation P except “End dividend imputation cheques to EX-taxpayers: $14.2 billion, to award the proceeds to non-tax payers.”including imported voteherds and the healthcare of their parents and grandparents should be appended

  18. Anthony

    • End dividend imputation cheques to non-taxpayers: $14.2 billion

    Investors will probably change their portfolio, reducing, if not eliminating the extra tax collected.

    • Scrap the Coalition’s stage 2 tax cuts: $13.63 billion
    • Reform tax breaks for trusts: $7.79 billion
    • Cut tax breaks for superannuation: $5.42 billion
    • Budget repair levy on higher incomes: $3.8 billion

    They probably get these done.

    • Close negative gearing and increase capital gains tax: $2.79 billion

    Some or all of this probably fails in the Senate.

    • Cut spending on consultants: $2.64 billion
    • Close tax breaks for multinationals using tax havens: $1.53 billion.

    A couple of very whipped dead horses I think.

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