Because Trump says he will do something is no reason to follow
When the GFC sent most of the world into an economic tailspin, Wayne Swan broke from the international pack to follow Treasury’s advice to go hard and fast with stimulus. This has been recognised throughout the world as an exemplary move that largely saved Australia from the troubles felt elsewhere. This was effective leadership which has been petulantly and unfairly tarnished by the Coalition.
As we face uncertain times again, our current Treasurer shows no such leadership, no such understanding. Instead, he has a bad case of follow the leader, and I don’t mean Turnbull.
The US and UK are reducing company taxes so we must. Apparently we must do this to “remain competitive”.
Funny – I used to think competition meant the best deal for the consumer but now it means who will give investors the best deal. We compete to make them more profit.
And by investors, I mean foreign investors because, due to our unique imputed dividends system in Australia, cutting company tax will not advantage Australian shareholders, who will have to pay more income tax as a result, but it will send greater profits to foreign shareholders who do not pay tax here.
The theory is that those foreign shareholders will reinvest that greater profit in Australia which will create jobs and growth.
Except, even making that questionable assumption, the modelling shows a paltry return for huge cost.
Treasury’s modelling finds that the cut in company tax would cause real GDP to be 1 per cent higher than otherwise in the “long term” (taken to be about 20 years).
But the level of real GNI (Gross National Income) would be only 0.6 per cent higher than otherwise due to the benefit going largely offshore.
As budget papers routinely predict GNI to rise by about 1.5% a year, this is hardly a blip on the radar.
We are told by Morrison that most of this miniscule increase would go to wage earners. Modelling shows that, after 20 or 25 or 30 years, the level of real after-tax wages will be 0.4 per cent higher than otherwise.
As for job creation, the Treasury modelling finds that the level of employment in 20 or 30 years’ time will be just 0.1 per cent higher than otherwise.
And the price of this me-tooism?
The phase-in will have a cumulative cost to the budget of $48.2 billion over the next decade and, when completed, an ongoing annual cost of $8.3 billion (according to modelling by Independent Economics).
That shortfall in revenue will be paid by those of us who are not companies by cuts in services and welfare payments and bracket creep on our income taxes. The government will cry that funding increases every year – it just doesn’t increase to what was promised in signed agreements with the states to address needs-based funding in education and under-resourced public hospitals. Compensating for inflation and population growth does not equate to increased funding.
And never forget that they are planning on spending $400 billion over the next twenty years on war machinery.
We really need to get rid of this amateur who knows nothing about economics, who cares nothing for long term results, who is totally disinterested in truth, but does a great “Hallelujah Brother Trump – whither thou goest we shall follow,” ably (?) backed up, or perhaps shoved, by Kate Carnelll’s doo wop chorus line.
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14 comments
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Freethinker -
MichaelW -
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Matters Not -
Keitha Granville -
Andyalwayswatches -
jim -
corvus boreus -
Terry2 -
Kaye Lee -
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crypt0 -
Kate Ahearne -
Dave
Return to home pageIt is not because Trump say, it is because USA say and as all ways was the case the Australian governments abide
I will repeat myself yet again, posted a longer version on R D Woods piece. Morrison wants to cut company tax to 20%. When 36% of companies trading in Australia pay no tax, those that do pay tax pay little compared to their gross earnings. And this clown is treasurer.
Employees in Australia pay more tax to the government coffers than companies that are ripping us off billions of dollars…..
If morrison is allowed for follow the septics at a cost over 20 years:
$150 billion increase in jobs 0.1% and increase in wages 0.4%?
needs a slogan???
True that the Labor government did go hard and fast with stimulus on Treasury advice but the ‘driver of the bus’ at that time was Rudd. Swan was a mere passenger. Not the important decision maker.
Ken Henry acknowledged that Rudd had a deep and insightful understanding of what was required and prepared to act accordingly. While Rudd had many failings, he was very well read in that area and Henry’s advice happened to jell with his own understandings.
Politically Rudd deserves the credit. Not Swan. (Not suggesting that Swan, if permitted, would have made a contrary decision – only that he was there as a spectator.) Much to his chagrin. As later developments showed.
Pretty sure that Wayne Swan was the Treasurer at the time, so it was most likely as a government that they made this decision.
This idea hsn’t really been thought through properly yet, however, I have feeling that partnerships with China etc could be refocused, as to better provide infactructure through the opening up and development of more arid areas of Australia, As the Chinese covert both mineral and pasteral recources, perhap an agrrement could be made wherbye the Chinese would be preppared to invers large sums of money in collecting, re-routing, and putting in place a water system which collects the huge amounts of water brought each tear by the monssons, It could then be collected up north and piped in land is such a manner that it would benefit farmers, miners and cattlemen. Indoing so, farmers may have more planting options and better water security, This in turn would have to provde emolyment opportunites, a more permanent greening of the outback. With more land becoming arable,more jobs would naturally follow. As the Chinese already own large parts of our agricultural and mining land, the would see incresed profits through a better water supply making more land viable to support a range of domestic and international endevours. Another big Snowy Hydro Scheme for Northto south just behing the deviding range, I feel this approach would see Aussies benefit far more than the usuall trickle-down drips that we have so far been getting, I feel that such a model would help create employment in rural areas, provide for a better re-distribtion of wealth. Give them tax free arangemnets to build the original infurstructure and then, once built, fair taxes must be paid for ongoing production. I nstead of focusing on one mine or one cattle property, we need a good water dispursal method which is capable of opening up country for a wide range of prospective projects. Just a few thouths.
But did you know the Andrews Labor government has “completely lost control of law and order” well this is what the nine network have stated over and over, re prison breakouts.
There are more people employed in Victoria than ever before, and there have been almost 200,000 extra jobs created since the Andrews Labor Government came to office in November 2014.
The latest data released today by the Australian Bureau of Statistics (ABS) shows that there were an extra 13,600 people in a job in December.
This is more than the national result, which saw an increase of 13,500 for December.
Across the 2016 year, 118,500 extra people were employed in Victoria, 67,800 of these full-time. Nationally there were 91,500 people employed with a fall in full-time work of 34,000.
The numbers confirm that the annual pace of total and full-time job creation in Victoria continues to lead the nation.
In stark contrast, New South Wales only had an increase of 600 jobs in December, and 1000 jobs across 2016.
Victoria’s unemployment rate remained steady at 6 per cent in December, down from the 6.6 per cent we inherited from the previous Liberal Government.
Victoria’s unemployment rate remains the second lowest of the states, as more Victorians – buoyed by strong economic conditions locally – re-entered the labour force and began looking for work.
The state’s youth unemployment was also unchanged at 12.9 per cent in December, but still 1.6 percentage points lower than one year ago.
Victoria’s labour market is expected to remain robust, with recent trends in leading indicators of employment growth, including job advertisements and vacancies, indicating solid job growth is likely to continue.
Quotes attributable to Acting Treasurer Robin Scott
“The Andrews Labor Government’s strong infrastructure pipeline and sound financial management continues to reap benefits for Victorians – with almost 200,000 jobs created since we came to office in November 2014.”
“We are delivering on our promise to Victorians – to grow a strong economy that bolsters job growth and creates opportunities for all.”
Published on January 19, 2017
The Andrews Labor Government’s move to permanently ban fracking for gas continues to build support with farmers near Victoria’s surf coast saying they want the practice outlawed for good.
Minister for Resources Wade Noonan was taken on a guided tour through a local farm in Bambra, inland of Aireys Inlet, where he spoke to community members opposed to fracking.
The area has a strong focus on sustainable agriculture, and some local farmers are actively engaged with the Lock the Gate campaign.
The Labor Government’s decision to ban fracking – a gas extraction technique which involves the hydraulic fracturing of rock and coal seams – was made in response to the 2015 Parliamentary Inquiry into Onshore Unconventional Gas in Victoria.
That inquiry received more than 1600 submissions, mostly opposed to onshore unconventional gas.
Victorian farmers export about $12 billion in food and fibre products a year, and the Government has made clear it won’t risk the clean and green reputation of our produce, or the 190,000 jobs in the sector.
In November, Mr Noonan introduced the Resources Legislation Amendment (Fracking Ban) Bill 2016 to Parliament. The legislation will outlaw gas fracking and coal seam gas extraction.
The new legislation also extends the moratorium on onshore conventional gas exploration and development to 30 June, 2020.
Quotes attributable to Minister for Resources Wade Noonan
“Victorians have made up their mind on fracking, and it’s great to hear first-hand accounts from members of the community who support putting an end to it.”
“The Bill currently before Parliament will ensure Victoria remains fracking-free to support food and fibre production across the state, and local jobs.”
Published on January 24, 2017
Victoria’s regional unemployment rate has dropped to 5 per cent in the December quarter, the lowest it has been since the Andrews Labor Government came to office in November 2014.
The latest data from the Australian Bureau of Statistics (ABS) showed regional employment increased by 16,400 persons for the December quarter, the highest increase in Australia.
The unemployment rate dropped 0.8 points in the quarter, with the annual pace of total job creation in regional Victoria still leading the nation.
Across the quarter, there were 7,500 new jobs in the Latrobe-Gippsland region, Ballarat saw an increase of 7,700, and Warrnambool and South West 4,400.
The Hume region’s unemployment rate dropped from 6 per cent to 4.4 per cent, and Shepparton’s from 7.1 per cent to 5.7 per cent.
Across the 2016 year, Geelong’s employment increased by 7,800 people, Bendigo by 7,000 and North West by 6,300.
Since the Labor Government came to office, an extra 43,300 regional Victorians are now gainfully employed – including 9,400 on a full-time basis.
The figures come off the back of last week’s ABS data, which showed an extra 118,500 people were employed in Victoria in 2016, 67,800 of these full-time. There have been almost 200,000 new jobs created in Victoria since November 2014.
Victoria’s labour market is expected to remain robust, with recent trends in leading indicators of employment growth, indicating solid job growth is likely to continue.
Quotes attributable to Acting Treasurer Robin Scott
“We’re delivering the things that matter for people in regional and rural Victoria – growing a stronger economy that creates more jobs and opportunities for Victorians.”
“We’ve worked hard to reverse the poor management of the last Liberal National Government – growing a strong economy that creates opportunities for all.”
Quotes attributable to Minister for Employment Wade Noonan
“These strong jobs numbers show that the Andrews Labor Government is changing people’s lives for the better.”
“We saw in Portland just last week how important stable employment is for the families and livelihoods of regional Victorians, and we’ll continue investing to put more people into work.”
Published on January 24, 2017………https://www.viclabor.com.au/#
Jim,
Congratulations to the Andrews government, particularly for responding to both scientific and broad public concerns expressed about the destructive repercussions of ‘unconventional coal/gas extraction’ on water, land and air quality.
These impacts are negative both in terms of the natural environment and sustainable land resource management (eg farming).
There are vast numbers of votes to be gained, even from relatively conservative minds, in taking a strong stand against fracking.
Meanwhile in Washington the annual anti-abortion rally was addressed by Mike Pence and also Kellyanne Conway, the most powerful woman in the USA, she said this:
“We hear you. We see you. We respect you,” Conway said. “And we look forward to working with you.”
Trump has said Roe v. Wade should be overturned and has vowed to appoint an anti-abortion justice to fill the Supreme Court seat left vacant by the death of Justice Antonin Scalia last year. As far as Trump is concerned it’s not a question of appointing a fair-minded impartial justice to the highest court in the land ; it’s all about finding a political stooge.
Women in America you need to be very worried : the pussy grabber now wants to control your bodies and your minds.
Misogyny is back in fashion, Tony would be so pleased.
Conway got into a punch-up at the inaugural ball. Two men who were either friends or family of Conway’s started brawling, she strode in and landed a few punches of her own into one of them. It’s the Trump way.
http://www.dailytelegraph.com.au/news/world/donald-trumps-adviser-kellyanne-conway-gets-secret-service-protection-punches-man-at-ball/news-story/376a8696e4fc636f3717b6163acdafbe
sad fact, jim, sunrise and today drive the truth and they are firmly right behind the lnp. Andrews and billy will need to get some influence on those shows but how is the $64000 question and that was fixed as well?? festina lente but start ‘festina’-ing.
Even the autocuist on the ABC are naturally pro-government, as one would expect(although they were not pro-gillard’s government) but why increasingly more anti-labor?
Anyone expecting a member of this LieNP “government” to exercise a bit of independent thought, outside of the IPA and US mantras regularly heard, is in for eternal disappointment.
Thanks, Kaye
Jim, Wow! What an effort!
Wayne Swan, “Where The Bloody Hell Are You”?