http://www.theaustralian.news.com.au/bu ... 18,00.htmlThe risk of higher taxes was raised by ANZ Bank chief economist Saul Eslake at the Senate committee inquiry into the Government's $42billion stimulus package announced last week.
"It may well ultimately be true that servicing or repaying the debt incurred now will ultimately require higher taxes down the track," warned Eslake who, incidentally, broadly supports the fiscal stimulus.
"That would be in many ways regrettable, in my view, but it may also reflect the fact that the tax cuts in the middle years of this decade were only sustainable to the extent that the commodities boom, which paid for them, continued, which it inevitably has not."
The article is crap but the above quote from it shows that what I have been talking about, mining boom, unsustainable tax cuts etc was 100% right.
Another choice bit:
The weaker tax base also will confront the build-up of middle class welfare financed by the temporary revenue bonanza of the China-fuelled resources boom in the later half of the Howard-Costello government.