Rudd is announcing the ALP tax policy as we speak…
Under Labor, tax rates would be 15 per cent, 30 per cent and 40 per cent.
Sky News said that according to its calculations, Labor’s tax cuts would come in at $31 billion, compared to the Coalition’s $34bn.
Mr Rudd said Labor’s tax policy would be submitted to Treasury in appropriate, reasonable time.
Mr Rudd outlined a $2.3 billion plan to give tax breaks to families for education costs, as the first plank of a three-pronged tax reform plan under a Labor government.
“Labor will introduce a 50 per cent education tax refund for working families for their investment in their kids’ education,” he said.
Team Rudd does not seem to be able to hold its nerve.
Liberal party demand Labor releases its tax policy now, and Labor caves the moment they see a poll number they don’t like. Instead of helping everyone to forget about Howard’s tax policy by election day they have now helped make it a defining element of the election. Way to go Rudd. Fighting Howard on the tax cut’s battleground. That’ll work /sarcasm.
Howard demands one debate, this Sunday and instead of letting Howard look like an idiot talking to himself and implicitly giving Rudd the chance to have one hour live prime time TV spots on Sunday nights closer to the election, Rudd caves
Liberal party HQ must be feeling this is just like old times up against Beazely. I think Labor will turn it around, but I saw these two challenges by Howard as a test of Rudd’s nerve and his confidence in setting his own election agenda. He hasn’t done well. Howard will only increase the pressure this initial success. Labor had better figure out what they’re going to do about it.
swio, I would agree.. but…
.. its actually a good tax policy. I’m as shocked as anybody.
Why would they fund education through the tax system - that just leaves it open to rorting. Why not identify the poorest say 500 schools and give the money to them to upgrade computer facilities?
Swio, I really don’t think that Rudd released his tax policy because Howard dared him to.
Trevor; because the schools would rort it far far far FAR worse, and you’d end up with MLC and B’nai Birinth on the bottom 500 again. Kids needs the laptop at home as well as at school. Its really quite fundamental these days and the tech pick-up rate for kids is far lower than service economy countries we’re competing against.
Anna you have more faith than I do. I second swio completely. But the main reason I’m commenting is that Phil’s post on The Oz v Akerman is showing up in Google reader but I can’t open it. And I love me some Aker-bashing.
Swio, Rudd could also be releasing his ’bout the same tax policies now, so by the time the election comes around the discourse will be about some other policies (infrastructure anyone?)
Rudd, you muppet, spend it on infrastructure. Tax cuts won’t give the bush broadband, tax cuts won’t fix state schools, tax cuts won’t encourage the uptake of green energy.
Ken, the Akerman post will be back later, I think.
And it’s not about “faith”, whatever that is. I just don’t think that they’ve announced it because Howard told them to. I’m sure there are a lot more factors than that. But mostly, I think we should all calm down a little with the whole OMG Rudd’s falling for Howard’s tricks thing.
You can already claim a lap top computer each year as an adult.
You have to spend the money to get the deduction. Won’t that be inflationary?
Big woop.
People without kids: Fuck you!
I agree. And I think it’s about time the ALP rolled out a few repeats of Fraser’s “fist full of dollars” ads from ‘76 when JHo was treasurer (and subsequently took the promised tax cuts back). It won’t play to Gen Y, of course, but anyway …
What was it? ‘Love me or loathe me, people know what I stand for’? Yeah, right.
Peter Martin has the details.
I agree with Sam.
If governments collect tax, then they should spend these taxes on us, not hoard it to bolster their election chances. Or am i living in a dream world?
Yobbo’s right, just because I don’t have kids, doesn’t mean I shouldn’t get help with the money I pay for their education. Or something…
Thank you CK,
at last someone else old enough to remember the 1977 “Fistful of Dollars” ads!! Crass but effective. (I saw a journalist recently claiming they dated from JHo’s unsuccessful campaign in 1983.)
I agree with Anna Winter: just because Rudd does X, doesn’t mean he was forced to by the PM. It’s probably not that tricky or convoluted. They may have been planning to put it out soon in any case. How would any of us know for certain? Don’t fall for the old “Theorem” that the PM is super-smart. I think he’s stumbled often enough this year to have already disproved it.
I think Kevin really is “messing with John’s mind”, though the claim struck me as sheer hubris when it first appeared.
Society for The Rapid Expungement of The Semi-Paranoid Term “Wedge” from Campaign Punditry, on Aesthetic and Clarity Grounds as Much as Anything Else
“Labor will defer the Government’s proposed tax cuts for those individuals earning more than $180,000 per year - saving around $3 billion over the Forward Estimates.”
ohmigod, that’s the just the sort of radical chic, union-leader-thug, politics-of-envy mightmare we’ve all been dreading !!!
It’s true, Mummy, they’re just GHASTLY !!!
There goes our annual holiday in Whistler, darling.
Sam, increased energy taxes will push up the usage of green energy
Yup. Still nothing for single self-indulgent latte-sipping theatre-going overseas-holidaying book-buying inner city renters like me. Bastards.
Still, I have to admire the nous in tying their tax policy to their headline issues.
“You can already claim a lap top computer each year as an adult.”
No you can’t unless it is solely or partly for work purposes (pro-rata claim if part work usage)and even then only at the applicable depreciation rate not as an outright deduction.
Same strategy: Tax cuts! Tax cuts! Tax cuts!
But it was a different era, heavily influenced by the ‘tax-cuts at all costs’ campaign in the US (Proposition something-or-other). I don’t think it will work- the world’s moved on.
Framing Labor’s tax plan today in terms if childcare and education - rather than $34billion of lollies - is pretty good in my view, and entirely in keeping with the campaign theme.
Let’s face it, the Libs shot their big guns on the first day. They’ve done their ammunition. Short of GWB bombing Iran, they’re rooted.
I agree with Swio too. This is another me-too, dancing to Howard’s tune, on Howard’s preferred turf. Does Labor polling increase when the subject is taxation? I think not. They have missed an opportunity to slame Howard and Costello for being financially incompetent and devious by rolling out tax cuts to win an election. And they just handing back as pork what they have gained via Bracket Creep [link]
I agree with Sam too. Where is the spending of infrastructure?
Meanwhile, the coal industry happily rumbles along and our public schools and public transport are in a steady state of decline.
The ALP’s tax plan is predictably similar to the Coalition’s, but let’s face it, there are only so many ways you can slice the same pie. Labor is at least keeping a hefty slice of it for the educational expenses rebate, which is a clever link to the party’s major theme of ‘education revolution’. Those on incomes over $180k will not miss out on a tax cut, of course. They will still get the cuts to the lower rates, it’s only the income they earn over $180k that will still be taxed at the higher rate. Apparently this is only about 3% of the population anyway, and few of them would have been voting Labor. Costello, as usual, tries to have it both ways with his criticism. In one breath he says the ALP plan is unworkable, and in the next tells us it’s 97.5% of the Coalition’s plan. WTF Peter? He had his serious face on today (not as serious as the one he’ll have on on November 25), exercising smirk control.
Well the policy speeches are going to be absolutely riveting, I must say. What’s left to announce? Maybe Howard will propose an independent tribunal to arbitrate on industrial disputes while Rudd promises to send troops to Iran if requested by the USA.
This is one voter who’ll definitely come out of the booth with a smile on his face.
“The infrastructure, stupid”
“You can already claim a lap top computer each year as an adult.�
No you can’t unless it is solely or partly for work purposes … .
Yes, but I recall that the racket is more easily worked if the employee can obtain the computer through salary sacrifice. He/she can then sell it & keep the profit. Hence the ads in Canberra papers for computers in unopened boxes. Rudd’s advisers must be aware of this, and should have closed the loophole. They might well have created another one. Brilliant.
“computer through salary sacrifice”
That is not the same as claiming a tax deduction which is what was claimed. It is slightly easier to rort the fbt but is still only supposed to be ‘if otherwise deductible’ (eg you aren’t going to get away with it for a waitress). Salary sacrifice is also unavailable to large numbers of employees because it is too much bother for the employer.
BTW the education rebate doesn’t ONLY apply to computers.
“education revolution’ is it now?
Then how come I hear no ALP talk, not a whisper, about a counter-attack against the massive and cruel destruction of human abilities and potentialities which our current counter-revolutionary education system both reflects and helps to perpetuate?
Sad, if people are so easily bought off with these pathetic monetary crumbs that will change precisely nothing.
Just a new person entering the foray when they should be studying for uni exams instead!!
Anyway a couple of responses to some comments made.
Trevor: You say that giving the incentive back through tax is open to rorting. What difference is there between claiming this and say a business claiming business expenses? You need to be classed as a specific type of tax payer being on family benefit A or something similar to get it anyway.
Its a good start to making sure the money is spent on something that might be educational. If your a family with children does it make a difference who buys the computer? All members of the household will use it.
Anyway the funding of that has come at the expense of those that can afford to go without that tiny bit extra the most, people earning over $180,000 per year.
Rudd’s done the right thing. By releasing roughly similar tax proposals at the beginning of the campaign, he’s got the issue out of the way early and cleared the decks for the issues which are winners for Labor. Tax is not necessarily a loser for Labor, but it certainly isn’t a winner.
Given that the polls were supposedly moving in Howards favour, according to media reports, how come he is so grumpy? No love for the nice men in the rabbit suits.
Then Kev just drops all his tax policy stuff on the fryd’y arvo, when you traditionally exit the kiddy fiddler stories.
It’s leaving me completely puzzled.
“Look! The emperor isn’t wearing any clothes!”
The poster H. has it right. Tax was never going to be a defining issue in this campaign. There are a thousand reasons to rid ourselves of the stinking carcase that is the Howard government, but I wouldn’t put marginal tax rates among them.
Rudd has just neutralised an issue that was threatening to give Howard a (flimsy) life line. And he has given it a slight social spin to his version just to differentiate it.
In any case, all the polls are saying that most people are happy with the direction the country is going in (although some of us aren’t). But most people are also fed up with Howard and looking for a change.
So as someone on some other blog observed, this is really coming down to a referendum on Howard.
As the sub-prime minister wouldn’t do the job on him, it’s up to Rudd.
As for education and health, if he’d just blown a big chunk of the tax package on those issues, Howard could have accused him of rewarding the states’ incompetence. Rudd can address those issues with his cooperative federalism approach.
On that subject, he might like to set a billion aside to wean the states over pokie taxes.
“Look! The emperor isn’t wearing any clothes!�
Oh hell! tracky dak misadventure.
“Hyacinth…elastic…elastic..”
No wonder the worm is banned.
The other question is how much money is likely to be in the money pit over the term of the next government.
As Crikey was pointing out, if you listen to Treasury they’re expecting our export prices (and thus BHP and Rio Tinto’s company tax contributions) to return to historical levels over the next couple of years.
BHP itself doesn’t seem to think so.
Well, I thought the same initially…particularly as my wife & I are childless & we would like to give more to the overseas children & animal-related charities we already contribute to…& we have two brand new nephews who we are already purchasing May Gibb’s hardcovers, Wind & the Willows & other learning materials for, so every extra dollar helps…
BUT…
I do like the idea that poor working families will be provided w/ incentive to purchase communication equipment that can help empower their children…& 400 million to assist w/ waiting lists in hospitals is essential. And I’m pleased the tax cuts for the rich has been delayed.
SHAME!!! on Sky News for not showing Labor’s tax policy thru the avo on a seperate digital channel as they did the Coalition one…& the old fella on there was nuthin’ but critical…BIAS, BIAS, BIAS…& i can’t even remember them mentioning that Labor were providing 400 million for hospital waiting lists.
I’m over criticising Labor. This government are part of a Neo-Con/Neo-Lib conspiracy to screw Unions, lower wages, shift services from the public sector to private & Corporatise Australia & other allied Nations. They support a Bush government that is incrementally putting in place an economic crunch by way of stirring things up w/ China via ‘the encirclement’ plan, a sudden, hypocritical U-Turn on human right’s issues (but primarily related to religious freedoms), the lowering of the dollar & other strategies to force China into a military buildup at the expense of health, social security & environmental reforms.
These Neo-Lib/Neo-Con govts. are run by fossil fools, oil speculators, financial big wigs, armament groups, the Halliburtons of the World, a few media empires, Big Pharma, a bunch of Private Security mobsters, a bunch of wealthy dynasties & the like.
This Government is a bleedin’ nightmare.
Rudd In, Howard Out!
I’m with Anna, I don’t think Rudd should be criticized over this policy too much. I think it’s pretty good politics, it completely nullifies TeH GRAND COALITION TAX PLAN or whatever it has been called this week. I notice that Costello fell for it as well with his triumphant “see look they are copying us!” routine. Now they have absolutely no room for attacking the Labor plan.
Now voters get a tax cut no matter who they vote for, what’s more the Labor plan looks better for working families. In addition to this Labor has only had to sustain one week of the “where’s your tax plan?” game.
“People without kids: Fuck you!”
Apart from the tax cuts.
Yobbo, you should go to your local video score and rent “The Life of Brian”. Take careful of the scene where the leader of the People’s Front for Liberation of Judea asks “What have the Romans ever done for us?”
Mick didn’t you hear? Costello’s noticed a ‘huge black hole’ in Labor’s costings in (wait for it) 2012/13. And ‘he’ll have plenty to say about it later’ (cue theme from Jaws).
So there you go. If Labor wins this election … and the next one … we’ll all be rooned because Kevin Rudd can’t add up.
Was Costello always an insufferably smug smartarse and I never really noticed, or has he only developed this studied patronising manner lately, with the not-quite-suppressed smirk and the studied pauses in every sentence? I swear every time I see him I think how much he’d benefit from a good slap.
Does Davidson have a point?
They haven’t been. The rich will benefit from the same reductions in tax that everyone below the top marginal rate gets. Only the tax cut that would apply only to them has been delayed.
That is fair. That is good politics.
Ken, he has always been a shocker, well at least ever since I’ve been half-way adult and noticed such things. But just think. This man will be gone in a few weeks. And we will just have Rudd, Garrett, Gillard and whoever. Yes, yes. I know they are not total zombie-sadists. But still…
On Faine abc, today, the insufferable prat Costello was trying to explain away his flirtation with social democracy.
http://www.bilegrip.com/archives/2007/10/peter_costellos_pinko_past.html#comments
Saying pretty much that everbody was chasing him to join their club at monash uni. Mr popularity has become much more painful over the last six months, Ken.
Ken, Tip has definitely become even more insufferable of late. I think he’s Rudd’s best asset, along with Abbott, Bishop, Downer, Howard, Nelson….
God, they’re a pathetic bunch. I hope that jinmaro’s right.
I wonder if plasma and lcd tvs will count as educational spending. Gotta watch those documentaries on something
btw do the tax cuts proposed by Labor and Liberal parties even keep up with bracket creep? Over the 4-5 years mentioned I doubt it. I suspect that neither side is actually giving anything back at all.
Ken, I’ve always had the impression that Costello was more than a little too smug.
Peterc, I agree with Swio too. This is another me-too, dancing to Howard’s tune, on Howard’s preferred turf.
An entire tax bracket was cut. It wasn’t just moving tax brackets to stave off bracket creep with salary inflation like the Liberal Party policy mainly was.
cam
“I notice that Costello fell for it as well with his triumphant “see look they are copying us!â€? routine. Now they have absolutely no room for attacking the Labor plan.”
That’s dead right mick. The ALP has neutralised the “tax policy” game, and now both parties are under attack by some economists for being profligate. Place to be.
Most voters don’t care or understand about the dangers of Howard’s election profligacy, (its called “good economic management” apparently), so Rudd can’t be challenged either. At least not for now.
Rudd has hugged his enemy close, as the chinese would say. A cunning plan that is going right over the heads of the dimwitted toadies at the GG and elsewhere. The me-too meme is sooo juvenile. They ought to grow up.
Voters know we live in a society, not just an economy. They care about their kids’ education and health, and Rudd’s tax policy has the edge over Howard’s on that front.
Rudd has also asked the very rich to shut up and be nice. Another cunning plan that will probably work at some level.
Score Rudd the winner in the longer run.
Costello’s claims of “errors in costing” will play out for a few more days through the media, but with 34B in the basket who really cares?
There’s another five weeks to go. Next.
Isn’t it true that the tax cuts will be putting pressure on inflation at a time food prices are likely to increase hugely because of the drought? Isn’t it also true that as a consequence in an attempt to rein in inflation the Reserve Bank will increase interest rates no matter who wins Government. And isn’t it true that all these extra computers for kiddies will result in inflationary pressures.
I know this isn’t exacrly going to lead to the Weimar Republic, but the poor, particularly, should maybe hang on for the ride.
Was Costello always an insufferably smug smartarse and I never really noticed, or has he only developed this studied patronising manner lately, with the not-quite-suppressed smirk and the studied pauses in every sentence? I swear every time I see him I think how much he’d benefit from a good slap.
No, Ken, I want to slap him too. (For the benefit of any Liberal apparatchiks monitoring this thread: This is a JOKE, Joyce.)
“(For the benefit of any Liberal apparatchiks monitoring this thread: This is a JOKE, Joyce.)”
I would not worry Helen, they probably want to slap him as well.
The big punce.
The me-too meme is sooo juvenile.
Maybe, but they’ll probably get some traction with it. The ABC TV news last night presented the ALP’s tax policy almost entirely in terms of “me-tooism”, which wasn’t a good look.
The delayed tax cut for the rich is actually higher under Labor, because they want to abolish the 35% rate. That equates to $10 Billion where the governments tax cut for the rich is only 4 billion.
What was Rudd to do re Costello’s tax cuts? Have you all forgotten what happened to Beasley a couple of years back, after in the Budget, Costello gave some tax cuts Beasley in his budget reply, said that he would not give the same tax cuts but would spend it on services. He was attacked for the next month how rotten Beasley was, not to give people a handful of dollars and made him look silly and bad economic manager etc etc etc.
If this was to happen now during a six week election campaign it would be disastrous. The trap was set and Rudd avoided it, much to the annoyance of Howard and Costello.
Muskiemp, I agree. And besides, as Davidson (cited above) argues these are not ‘tax cuts’. It is simply tax ‘indexation’.
Chris (a different one) seems to be close to the mark.
davidson relies on this.
Oh Dear, Even Glenn Milne is impressed by Rudd’s Tax Policy
http://www.news.com.au/perthnow/story/0,21598,22620554-5005374,00.html
It doesn’t look good for Team Rodent when one of your biggest backers dumps on you.
The Filthy Liberal’s tax policy is clearly better than Howard and Costello’s, both in political terms and in public policy terms (there you go Gummo!).
The subsidy system for education-related purchases makes a lot of sense (although can’t they organise reimbursement through Medicare/Family Assistance offices or something? Waiting until the end of the financial year is less than ideal). And although the Murdoch Press was at pains to paint the Filthy Liberal’s move as a return to the politics of envy, that’s a huge stretch given that there will only be a deferral of tax cuts for very high income earners.
A cracking start for the Filthy Liberal. If this election was all about personal income tax policy, he’d get my vote for sure.
BBB
On the website On Line Opinion an article of mine has been published considering progressive policy options for the election - including $24 million in new health funding over four years and an increase in pensions by approx 5% of Average Weekly Earnings. (AWE)
This stands in stark contrast to the overwhelming array of tax cuts being offered by both Labor and the Coalition. Labor has even gone so far as to outdo the conservatives - promising a ‘flatter’ tax system. It seems that the Greens remain isolated in their commitment to a broadly progressive tax system.
It is unclear what is to happen with the ‘tax credits’ scheme previously mooted by Labor. In the article I promote an alternative strategy based on modest tax reform and expansion of the social wage.
A slightly edited version has also been published on Leftwrites.
Soory, cant resist but,
If Howard steps aside and Abbott gets promoted then doesnt that leave us with
Abbott and Costello?
Tristan, is it your thesis that the ALP’s tax plan is not ‘broadly progressive’?
BBB
Interesting question BBB.
And as one of the many millions of Australians who couldn’t give a RA trawling through promised tax tables, I would suggest that Tristan might actually get a life instead of taking any of this tosh seriously.
It’s all about the narrative, dude. For one so young he’s way behind the times.