More taxes anyone?

It’s always trendy to soak the rich, and I note that Gormless Gordon (the man who as chancellor of the exchequer famously claimed to have erradicated boom and bust from the business cycle and now has to find GDP45 billion quickly) has started to move in that direction to the expected squels of pain from the Square Mile.

Now we here in the lucky country have a few problems, and the main one is a ballooning national debt and an alleged third stimulus package to be revealed in the budget in a couple of weeks. Now if general tax/royalty reciepts are down and the Ruddbot doesn’t want to do a Gough he’s going to have to rise interest rates and just picking on the rich list (whilhst good for spin) is not going to help too much and that means the chattering classes having to take a hit as well.

http://business.smh.com.au/business/rich-face-higher-taxes-rudd-20090424-ahb7.html

Hmm and we have an election coming into play soon. So are we going to see some real fiscal policies that include a bit of pain after our pleasure (usually it’s the other way around) or is the Ruddbot going to be banking on being re-elected before hitting us with a tax hike.

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12 Responses to “More taxes anyone?”

  1. Moko Says:

    I’d vote for anyone that stimulates my package once a month!.

  2. chazfh Says:

    You’re such a tart!

  3. havock21 Says:

    me toooooo, I reckons he’s gunna go the vote….before, co’s hes a pussy at heart

  4. abefrellman Says:

    Why would they need to raise interest rates?

  5. chazfh Says:

    Abe, good point err thats a bit of a typo I meant taxes!!!! Bloody havocks been sabotaging my keyboard..yes thats the reason!!!!

  6. abefrellman Says:

    Whew. For a minute there I thought you had gone to the Peter Costello school of economics. You know the one where running budget surpluses and retiring debt leads to lower interest rates because there is a shortage of bonds. (Although he was right in the sense that running surpluses for the sake of being able to say he was running surpluses meant that fiscal policy was too tight by definition and monetary policy would probably need to be set lower to compensate.)

  7. chazfh Says:

    Abe, nah holes in budget mean either selling tons and tons of bonds or dong the decent thing and raising taxes, assuming you want to keep on spending.

    or if the Ruddbot is in hoc to the chinese then he’ll just get loads of bonds done and they’ll buy them thue selling us down the swanny…

    Of course the Ruddbot could always just tighten the belt, but somehow thats not going to happen

  8. abefrellman Says:

    Well even if we get to $200bn in government bonds, that’s around 20% of GDP. The OECD average is more like 40%-50%…so I don’t think it’s as bad as people are making out. That said, I have my reservations about the quality of the spending that’s giving rise to all this debt.

  9. chazfh Says:

    Abe the issue is though that just because the rest of the OECD is at 40% doesn’t mean we should follow esp as soem of that money is just being pissed away and the murray-darling system still is not being looked at properly and etc etc etc.

  10. Therbs Says:

    Abe – the spending is indeed the problem. Sure, we like the $900 but how much more useful would be some infrastructure, R&D and training? I’m talking zombie fences, research into zombie weapons and training in the art of eliminating zombies.
    Chaz – the politically natural thing will be to have an election and ramp up taxes. Don’t be surprised to see a point or two added to the GST in 2012.
    By then the PAYE tax burden on those earning over 150k will have been upped, FTB more or less scrapped for the same group and taxes on super tweaked up. There’s still a lot of dough in super just yelling out “eat me”.

  11. hughesy Says:

    Hey Therbs,

    How come I didn’t get $900 bucks? I pay about $4K tax a year, and do not claim any benefit of any kind from the state, except the odd medicare claim (which levy I pay in addition to tax, oh, and I do use the road occasionally, and the library). But I’m not complaining, not even about the 10% GST I pay on the income I don’t have to send to Kevin as a lump sum.

    However, if I have to pay anymore tax than I do now, I’m not quite sure where it’s going to come from. My parents have more left over at the end of a fortnight and they live on the pension!

    Sure, the money should be spent on pubic works like the zombipocalypse, but in my case, it’ll keep Origen Energy, telstra, Suncorp, IGA, the landlord and BP going in the mean time.

  12. chazfh Says:

    Hughsey you may still get it don’t forget they’re rolling out the payments until mid-may. I still don’t have mine yet.

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