2019 Predictions -

 
  nswtrains Chief Commissioner

Tax cuts mean that the average battler will not only afford a trip to Bali or even Thailand but also upgrade their accommodation. Big injection to our Northern neighbours. People will also buy the latest mobile phone, tablet or 8k TVs. More money overseas.

Money should have been spent on infrastructure jobs in the regions.
LOL, good observation. Half of Perth goes to Bali for their school holidays, my friends who live there said almost half their kids primary school class was going to Bali next week - amazing.

If the AUD crashes then it might encourage people to holiday at home again.
don_dunstan
The average punter spends tax cuts on more useless trinkets. The Tax base in Australia is too small to support less tax. I agree infrastructure spending is the way to go. I don't think the AUD will crash as its at about the right level although from an overseas holiday perspective I loved it when our dollar was worth more than the greenback several years back.

Sponsored advertisement

  don_dunstan Minister for Railways

Location: Adelaide proud
I predict that even with the tax cuts the economy will still tank, and in the ensuing crisis they'll be a mini-budget by the end of the year.  Included in which will be an increase in the Medicare levy and big cutbacks in Govt spending...
Carnot
There's somewhat of a negative feedback loop happening with real-estate feeding into the rest of the economy. Lots of sectors of the economy are in diabolical trouble like retail (I've never seen my local Westfield looking so empty and devoid of tenants) and government revenues from income tax and GST are in danger of actually shrinking. All the signs are pointing to a very sudden contraction in the economy yet Frydenburg and ScoMo seem more preoccupied with keeping their (imaginary) surplus.

I noticed the other day that even Andrew Bolt has started calling for immediate action to avoid a recession - when that happens you'd think a Liberal government would finally take notice!
  RTT_Rules Dr Beeching

Location: Dubai UAE
Tax cuts mean that the average battler will not only afford a trip to Bali or even Thailand but also upgrade their accommodation. Big injection to our Northern neighbours. People will also buy the latest mobile phone, tablet or 8k TVs. More money overseas.

Money should have been spent on infrastructure jobs in the regions.
LOL, good observation. Half of Perth goes to Bali for their school holidays, my friends who live there said almost half their kids primary school class was going to Bali next week - amazing.

If the AUD crashes then it might encourage people to holiday at home again.
The average punter spends tax cuts on more useless trinkets. The Tax base in Australia is too small to support less tax. I agree infrastructure spending is the way to go. I don't think the AUD will crash as its at about the right level although from an overseas holiday perspective I loved it when our dollar was worth more than the greenback several years back.
nswtrains
So between the two of you, you are saying the average Australian middle class and lower doesn't deserve tax cuts because they don't know how or are too stupid to spend it in ways that is right for the economy? Meanwhile Don keeps posting how the lack of pay rises are the end of the Australian economy as we know it.

So what is it?

They either don't need more money in their pocket or they do need more money in their pocket?

If you are saying they cannot spend it in a sensible way, then why not take more money off them as they obviously don't deserve it!

Perhaps then just give the tax cuts to the upper class, at least they will spend it in the economy renovating their home, putting in a pool, buying new toys, investing, all of which generate jobs in some way shape or form.
  RTT_Rules Dr Beeching

Location: Dubai UAE
I am not being cynical... We should recall what happened to Krudd's $600 ca$h bonus to the battlers during the GFC. Sadly, people will not holiday at home. We have such an amazing country.
ANR
At 68c in the US$, the Australian tourism sector is already seeing some growth. People got used to OS holidays so it will take some time. Mind you if they are still going OS, how bad is the economy?

Krudd's $600 cash hand outs were credited by the faithful and many others as one of the key ingredients that avoided a recession.
  Aaron Minister for Railways

Location: University of Adelaide SA
The drunken sailor was handing out $900 payments, I know, I got three of them!

They did not much for the economy, I just banked mine with the rest of my spare dollars at the time. Most of those monies didn’t benefit Australia at all, most people spent it on OS made goods (especially TVs and other tech) other literally spent it overseas, via eBay/Alibaba etc, and in those days the government didn’t even see the GST back on the spending...

I remember one of my ex study mates bitching about the lack of tax cuts he received. I asked him how much tax he paid - he didn’t really work at the time and his parents supported him through uni. He said he paid ‘just under $1000 for the year, I asked how much he got back ‘all of it’ - how do you come to expect a tax cut when you earn nearly no money and pay no tax? He never did explain that - but he still likely votes Labor, that says about enough.
  ANR Assistant Commissioner

Not saying average low to middle income owner is not spending their tax cut/refund wisely, but saying they will fly to Bali. Qantas and Jet star will need to put on more flights.
  RTT_Rules Dr Beeching

Location: Dubai UAE
Not saying average low to middle income owner is not spending their tax cut/refund wisely, but saying they will fly to Bali. Qantas and Jet star will need to put on more flights.
ANR
If the average punter is using their tax cut to pay for a flights to Bali etc, then there is nothing wrong with the Australian economy including the impact of power price rises in recent years and lack of salary rises.

Basically if the govt is able to balance the budget and sustain the infrastructure spending plus fund the tax cuts, then things are not too bad.  Note for decades now there is ongoing complaints about tax bracket creep and failure by govts to deal with this, meanwhile as soon as they try and do something then we complain the govt is handing money to the workers who are too irresponsible to mange these few bucks a week. So which is it?
  Groundrelay Chief Commissioner

Location: Surrounded by Trolls!
Note for decades now there is ongoing complaints about tax bracket creep and failure by govts to deal with this, meanwhile as soon as they try and do something then we complain the govt is handing money to the workers who are too irresponsible to mange these few bucks a week. So which is it?
RTT_Rules
This had SFA to do with bracket creep. It's about the only policy the LNP had leading into a tight election. Aaron pointed out how these hand-outs get spent, especially by well off liberal party supporters (as he should know).

There are far better and fairer ways to offload billions if you want to help this economy. For starters raise the tax free threshold, because those on low incomes already pay relatively more in GST and are likely to spend what they get on necessities. Increase Newstart as they are in the same boat. Getting rid of the Medicare gap will also help the working poor, especially in regional areas where bulk billing is limited. If you're well off you don't need the government bankrolling your next indulgence.
  nswtrains Chief Commissioner

I am not being cynical... We should recall what happened to Krudd's $600 ca$h bonus to the battlers during the GFC. Sadly, people will not holiday at home. We have such an amazing country.
At 68c in the US$, the Australian tourism sector is already seeing some growth. People got used to OS holidays so it will take some time. Mind you if they are still going OS, how bad is the economy?

Krudd's $600 cash hand outs were credited by the faithful and many others as one of the key ingredients that avoided a recession.
RTT_Rules
No point arguing with you RTT as you are obviously a neo-liberal boofhead. I don't believe the economy is as bad as some would have you believe and most don't require a tax cut as the revenue should spent on infrastructure and not buying votes. Huge country, low tax base, taxation should be high. I don't see how you can argue otherwise.
  davesvline Chief Commissioner

Location: 1983-1998
GST goes to 20%. Dont ask anyone, just lower a few other taxes, and drop this one on the landscape.

What would it it do for govt coffers IF it happened??


Regards

ps - you jack up the GST, MORE money stays at home.
  justapassenger Chief Commissioner

GST goes to 20%. Dont ask anyone, just lower a few other taxes, and drop this one on the landscape.
davesvline
The policy of the political parties on increasing the GST to 15-20% is bipartisan - both sides want it, but want the other side to do the dirty work for them.

What would it it do for govt coffers IF it happened??
davesvline
No idea, but it would be great for the black economy.
  don_dunstan Minister for Railways

Location: Adelaide proud
GST goes to 20%. Dont ask anyone, just lower a few other taxes, and drop this one on the landscape.

What would it it do for govt coffers IF it happened??


Regards

ps - you jack up the GST, MORE money stays at home.
davesvline
GST is a broad-based tax on all kinds of consumption - therefore the more you consume the more you pay.

It therefore discriminates against people who are either poor or have no income at all (ie dependent children) because regardless of how much you earn or how much you have you still pay the same tax on a basket of goods from the supermarket. It is in no way a progressive tax.

If they doubled the GST they'd have to have some significant compensation for families and people at the very bottom of the income scale. I think JAP is also right in that it would add fuel to the fire in the tax-evasion industry...
  Groundrelay Chief Commissioner

Location: Surrounded by Trolls!
If they doubled the GST they'd have to have some significant compensation for families and people at the very bottom of the income scale. I think JAP is also right in that it would add fuel to the fire in the tax-evasion industry...
don_dunstan
The trouble with compensation is its value tends to diminish over time unless the basis of that compensation rises with prices. It does hurt people whose income does not keep pace with prices.

It also did little to kill the black economy. There's a reason low/no doc loans were popular until recently.
  ANR Assistant Commissioner
  ANR Assistant Commissioner

Sponsored advertisement

Subscribers: br30453, davesvline, RTT_Rules

Display from: