Last night, Malcolm Turnbull sent out the script to his cast of parrots who are apparently incapable of thinking for themselves. The “talking points” were immediately leaked to the press.
Predictably, the majority of it related to the trade union Royal Commission and Bill Shorten’s testimony, but it was the rest of it that should be prompting questions.
Under the heading Economic Management, we hear nothing at all about this government’s performance or intentions, just the same old attacks on Labor.
Labor’s Budget black hole is almost $50 billion and they have no way to fund it. Which taxes is Labor going to increase?
Hockey’s first two budgets yielded a $90 billion deficit and the 2015 MYEFO predicts a cumulative deficit of $108.3 billion over the next four years. And we know which tax increase Labor is going to oppose.
How can Labor seriously argue it has any credibility on the budget and maintaining competent economic management, given its blatantly populist approach to every issue that it has engaged on the past 2 ½ years?
Coming from the slogan party who has spent hundreds of millions on media monitoring and focus groups, the accusation of populism is somewhat laughable. And steering us unscathed through the GFC brought praise from the whole world for Labor’s economic management.
Can Bill Shorten point to a single saving measure that Labor is proposing, other than scrapping the $1.3 billion emissions reduction fund and replacing it with a carbon tax that will hit every Australian family when it comes to paying the electricity bill?
Scrapping the Direct Action debacle and introducing an ETS would raise revenue in the tens of billions. Labor’s proposed crackdown on multinational tax avoidance is projected to raise $20 billion over the next decade. Their crackdown on fraudulent claiming of business usage for cars would have saved another $1.8 billion had the Coalition not scrapped it supposedly to ‘save’ the car industry. They also had a plan to tax superannuation retirement income of over $100,000 pa but the Coalition scrapped that too. Instead, they have passed on an $80 billion black hole to the States by withdrawing funding for hospitals and schools. Morrison is determined to protect tax concessions for the wealthy, another area that Labor is prepared to look at.
Labor has criticised the Government for – in Bill Shorten’s own words – being ‘soft’ on multinationals, and yet Labor’s own policies in this area would only raise $1.9 billion, a tiny fraction of Labor’s $50.1 billion fiscal black hole. Treasury has criticised the policy, arguing it won’t work and may be counterproductive.
I can find no record of criticism from Treasury apart from Joe Hockey’s say so but there are numerous quotes from people like Jennifer Westacott and Kate Carnell saying that asking multinationals to pay tax would curb investment – the same line they always have and always will use.
Isn’t this just another example of Bill Shorten’s policy populism to hide the fact that Labor has no real economic plan or credibility?
I have not heard anything from the Coalition about a plan other than “everything is on the table except….” Two and a half years on and what have they achieved?
Under the heading The Tax System, we still hear nothing except criticism of Labor – no Coalition plan in sight despite their insistence that the Opposition release fully costed policies for a balanced budget.
Labor’s appalling record on tax is clear
Labor aren’t the ones who introduced the GST. It isn’t Labor who wants to increase it. And Hockey was the one who decided to increase the fuel excise every year.
Their carbon tax just pushed up prices for households and didn’t reduce emissions
To compensate for any price rises due to the carbon tax, Julia Gillard gave $7 billion worth of income tax cuts by increasing the tax free threshold from $6000 to $18200 along with other payments to low income earners and welfare recipients.
Emissions dropped by 11% in the two years during which the carbon tax was in place. They rose by 4.3% in the year after it was removed and emissions intensity increased as brown coal use grew again.
Their mining tax cost investments and jobs and didn’t raise any money
According to a BIS Shrapnel Mining in Australia report, mining investment dropped by 11% in 2014-15 after the removal of the mining tax, and is set to fall a further 58 per cent over the next three years. A further 20,000 job losses in the period can be expected, coming on top of the 40,000 losses since investment peaked in 2012-13.
According to Treasury advice, their multinational tax plan will just cost jobs and investment
As mentioned before, I can find no such advice except one sentence from Joe Hockey, and considering how wildly wrong he was in his assessment of the impact of the carbon and mining taxes, his opinion is of little value. Taxation can never make a profitable business unprofitable.
They can’t be trusted on tax – don’t listen to what they say, remember what they did
What good advice
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