Comments on: A balanced budget http://larvatusprodeo.net/2008/05/14/a-balanced-budget/ Blogging politics, culture, sociology and life from Brisvegas Sat, 11 Oct 2008 12:46:31 +0000 http://wordpress.org/?v=2.3.3 By: Mark http://larvatusprodeo.net/2008/05/14/a-balanced-budget/#comment-466737 Mark Wed, 14 May 2008 03:26:32 +0000 http://larvatusprodeo.net/2008/05/14/a-balanced-budget/#comment-466737 <b>Update</b>: Also in <a href="http://www.newmatilda.com/2008/05/14/wayne-and-easy-cuts" rel="nofollow">New Matilda</a>, Ben Eltham on the rhetoric and the reality of budget cutting, an assessment of the <a href="http://www.newmatilda.com/2008/05/14/viva-la-evolution" rel="nofollow">"Education Revolution"</a> and <a href="http://www.newmatilda.com/2008/05/14/waiting-game" rel="nofollow">the infrastructure fund</a>... And somehow an AFL metaphor slipped into the title of <a href="http://www.newmatilda.com/2008/05/14/swans-rules" rel="nofollow">my contribution</a> to the budget discussion the morning after. Update: Also in New Matilda, Ben Eltham on the rhetoric and the reality of budget cutting, an assessment of the “Education Revolution” and the infrastructure fund… And somehow an AFL metaphor slipped into the title of my contribution to the budget discussion the morning after.

]]> By: Howard C http://larvatusprodeo.net/2008/05/14/a-balanced-budget/#comment-466733 Howard C Wed, 14 May 2008 03:18:58 +0000 http://larvatusprodeo.net/2008/05/14/a-balanced-budget/#comment-466733 I'm not an economist, but there has been a review of the tax system announced to coincide with the budget. Yet this review won't include the GST or Superannuation. While the punters will breathe easier at these exclusions, this diminishes the rigour of the review. Obviously the economists quoted in this entry want less spending. They don't want massive inflationary tax cuts. However, how can a government achieve real taxation reform without telling someone in the community "you are going to be paying less tax"? Someone out there is going to have more money to spend. Over time it has been the top marginal tax rate that has been mooted to fall. With Robin Hood Wayne Swan on the front of my local paper today, that seems unlikely. So, the Rudd Government has kept to the request for a certain surplus. But will that be maintained long term? Should it be? And will it need the reversal of a election promise to do it? I'm happy to get my $10-12 per week tax cut. I don't know if the economists are happy I'm getting it though. I’m not an economist, but there has been a review of the tax system announced to coincide with the budget. Yet this review won’t include the GST or Superannuation.

While the punters will breathe easier at these exclusions, this diminishes the rigour of the review.

Obviously the economists quoted in this entry want less spending. They don’t want massive inflationary tax cuts. However, how can a government achieve real taxation reform without telling someone in the community “you are going to be paying less tax”? Someone out there is going to have more money to spend. Over time it has been the top marginal tax rate that has been mooted to fall. With Robin Hood Wayne Swan on the front of my local paper today, that seems unlikely.

So, the Rudd Government has kept to the request for a certain surplus. But will that be maintained long term? Should it be? And will it need the reversal of a election promise to do it?

I’m happy to get my $10-12 per week tax cut. I don’t know if the economists are happy I’m getting it though.

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