zaph

Hockey promises income tax cuts after next election

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Treasurer Joe Hockey has pledged that the Abbott government will take personal income tax cuts to the next election, ensuring they are a major  poll issue.

Read more: http://www.brisbanetimes.com.au/federal-politics/political-news/abbott-government-to-take-personal-income-tax-cuts-to-the-election-20150823-gj5rgg.html#ixzz3jgBikukA 

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Champagne for everyone!! 

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Champagne for everyone!! 

 

IMO, the tax brackets should be reviewed every year in line with inflation, where inflation should be defined as CPI * 2.

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Joe is just jawboning yet again in the hope of pressuring the states to agree to a GST rise/broadening of the base. That's all he's got. Tax "reform" is GST changes and nothing else. Superannuation, CGT and NG are firmly off the agenda. Ironically, bracket creep was his only hope of helping the deficit.

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Joe is just jawboning yet again in the hope of pressuring the states to agree to a GST rise/broadening of the base. That's all he's got. Tax "reform" is GST changes and nothing else. Superannuation, CGT and NG are firmly off the agenda. Ironically, bracket creep was his only hope of helping the deficit.

GST changes (imports) have been agreed by the states. Getting them to up the rate, or broaden it. will be enormously more difficult. 

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The only way Treasurer Joe Hockey could raise enough GST revenue to pay for his election tax-cut pledge would be to extend the tax to fresh food, education and healthcare.

A Parliamentary Library analysis obtained by Fairfax Media shows that if Mr Hockey extended the GST to healthcare products - as hinted by the Treasurer this week - it would raise an extra $16.25 billion in revenue over four years.

But that would not be enough to cover the $25 billion revenue shortfall estimated to arise from his personal income tax cut proposal.

Read more: http://www.watoday.com.au/federal-politics/political-news/joe-hockeys-income-tax-cut-gst-on-health-and-food-would-not-cover-shortfall-20150825-gj7fto.html#ixzz3jr6vKFaH 

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But that would not be enough to cover the $25 billion revenue shortfall estimated to arise from his personal income tax cut proposal.

But I would be interested to know what the figures would reveal if the GST were raised to 15%.

Especially if this included fresh food, education and healthcare.

I think we are being buttered up for a push to get the GST to this level.

All this talk about tax cuts can only come on the back of increased revenue.

Give the child the candy before making them eat their greens!!!

Its all about more money, as M.Armstrong keeps saying.

The (government, behind the government) bureaucrats know they do not have enough money, and with the mining bust now biting deep, they must be scouting the hills for any buried treasure.

Australians are going to face some hard realities soon.

Those who have lived only through these fat years, will find the reality adjustment very hard indeed.

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That's what all the property tax advocates kept forgetting. It won't be a replacement tax, it will be an additional tax. I notice there seem to be fewer advocates of the property tax around now, maybe they realised what reality is like. It is part of my reasoning for selling out of property now, too easy to tax - too hard to move.

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All this talk about tax cuts can only come on the back of increased revenue.

Or 'outlay adjustment measures'. AKA spending cuts to non politicians. 

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Or 'outlay adjustment measures'. AKA spending cuts to non politicians. 

Yes, thanks zaph.

I was commenting on the belief that we want things to stay exactly the same.

Austerity measures are always much more difficult to sell to the people.

Just ask Greece! Ask Joe after his first attempt at a budget!!

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GST changes (imports) have been agreed by the states. Getting them to up the rate, or broaden it. will be enormously more difficult. 

 

True. But I suspect that Hockeys constant announcing of the same policy is aimed at a certain upcoming by-election. He's managed to take his own re-announcement off the front page by diverting attention back to the republic debate. He must have ADD...

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Looks like we have Joe 2.0 as a treasurer. National press club address was apropos of nothing. Even Alan Jones had a crack at Morrison. As predicted tax "reform" was predicated on a rise in GST. Turnbull abandoned it and left Scott flat footed. The ramping down of income tax cuts to "modest" is an indication that NG and more importantly CGT on property will go untouched. Speculators can sleep well knowing that the table doesn't have room for such policies.

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Looks like we have Joe 2.0 as a treasurer. National press club address was apropos of nothing. Even Alan Jones had a crack at Morrison. As predicted tax "reform" was predicated on a rise in GST. Turnbull abandoned it and left Scott flat footed. The ramping down of income tax cuts to "modest" is an indication that NG and more importantly CGT on property will go untouched. Speculators can sleep well knowing that the table doesn't have room for such policies.

Politics is a shifty business!!

This government is in a "catch 22" situation.

They know they have to increase revenue, or the deficit is going to massively blow out in their next term.

They can't introduce any measures to do that because the election is close at hand.

I think Chris Bowen might be on the money, when he suggests Turnbull might call an early election after the Budget in May.

If they can hold out that long, they can win over the electorate by suggesting that they are going after the rich (tinkering with superannuation for those with over $1.5million in investment) and then prepare another Hockey style attack on the welfare recipients. Welfare is still the largest portion of the Federal budget. It won't be tax cuts, it will be spending cuts. Austerity by any other name......

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Politics is a shifty business!!

This government is in a "catch 22" situation.

They know they have to increase revenue, or the deficit is going to massively blow out in their next term.

They can't introduce any measures to do that because the election is close at hand.

I think Chris Bowen might be on the money, when he suggests Turnbull might call an early election after the Budget in May.

If they can hold out that long, they can win over the electorate by suggesting that they are going after the rich (tinkering with superannuation for those with over $1.5million in investment) and then prepare another Hockey style attack on the welfare recipients. Welfare is still the largest portion of the Federal budget. It won't be tax cuts, it will be spending cuts. Austerity by any other name......

 

+1. I don't think they want to rock the boat until after the election. Assuming the Libs win, the pain will be inflicted at next year's budget and possibly the one after that, before pork barreling starts again on the next election year.

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Politics is a shifty business!!

This government is in a "catch 22" situation.

They know they have to increase revenue, or the deficit is going to massively blow out in their next term.

They can't introduce any measures to do that because the election is close at hand.

I think Chris Bowen might be on the money, when he suggests Turnbull might call an early election after the Budget in May.

If they can hold out that long, they can win over the electorate by suggesting that they are going after the rich (tinkering with superannuation for those with over $1.5million in investment) and then prepare another Hockey style attack on the welfare recipients. Welfare is still the largest portion of the Federal budget. It won't be tax cuts, it will be spending cuts. Austerity by any other name......

 

Yes it is.

 

It's weird though that Morrison keeps trumpeting that there is a spending problem and no revenue problem. 

 

Their first budget cut spending on health and education and was roundly rejected by the senate and de facto by the populous according to the opinion polls.

 

It's fairly clear that the peeps don't want cuts to services or welfare. They do want cuts for those regarded as "rich". The definition of rich has become problematic when the "rich" simply have bigger mortgages and live pay check to pay check in the same way as the poor. Everyone now regards themselves as "struggling". This is the new egalitarianism.

 

Right on cue Malcolm comes out against Labor's modest change to NG as "smashing" property prices. OK it is an election year so hyperbole is the order of the day. Even so there seems to be little conception that the generous tax breaks might be having some influence on the staggering price of housing and debt here. In spite of all evidence to the contrary.

 

I've heard various theories of whether a DD benefits the LNP in the senate or not. But they are going to win the next election regardless. If they do get control of the senate I wouldn't like to on a fixed income...

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I've heard various theories of whether a DD benefits the LNP in the senate or not. But they are going to win the next election regardless. If they do get control of the senate I wouldn't like to on a fixed income...

Almost certainly not. Go to https://en.wikipedia.org/wiki/Double_dissolution under elections for a decent explanation. Unless the govt gets the changes to the senate voting system done before an election the senate will be have more small party senators and one issue senators. The triggers the govt has (and would get passed by a joint sitting) hardly seem worth ending up with rat bag senate. 

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Almost certainly not. Go to https://en.wikipedia.org/wiki/Double_dissolution under elections for a decent explanation. Unless the govt gets the changes to the senate voting system done before an election the senate will be have more small party senators and one issue senators. The triggers the govt has (and would get passed by a joint sitting) hardly seem worth ending up with rat bag senate. 

 

Sorry zaph, I should have clarified that I was referring to a DD post the new senate laws being passed. Even with the half quotas the preference trading will be more problematic as 97% vote above the line

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