Heard on ABC Newsradio that the idiot is trying to get around reversing the Carbon Tax without reversing the tax cuts and other compensation that are part of the CT package!
So at a time when the economy is soft with retail in the doldrums and house prices set to retreat, with the States Budgets being hit by big declines in GST revenues and stamp duty. . .the idiot is promising tax cuts!
How is he going to pay for these tax cuts? With the pretence of a $50Bn savings they have “identified” which has a big hole in it and which will see huge deficits past the 3 year Forward Estimates period? Is the idiot still going ahead with his middleclass welfare and huge unfunded liability of his Paid Parental Leave scheme? Is the idiot still going ahead with his so-called direct action plan on climate change? Another huge black hole for tax money to be thrown into that will achieve nothing CC wise but cost $$$.
Tone probably thinks he is very clever! He has cut the Gordian Knot! No problems about reversing the tax cuts when he cancels the Carbon Tax, he will just keep them! Dear God, the stupidity of this guy just beggars belief!
The big problem of the Budget is that income taxes got cut way too much by stupid Costello! Company tax is now a significant share of total tax revenues, something it has never been in the past. As I said, the economy is quite soft and that means company tax payments will be quite soft too. Even mining: with the big investments the miners are making they won’t be showing much in the way of profits for a while and by then China will have slowed its economy quite a bit so even the miners are not going to be making super profits and company tax payments will be soft and will be a drag on the Budget.
Then along comes Tone and swings a big wrecking ball at the Budget with tax cuts, his Paid Parental Leave scheme and his idiotic, proven to be ineffective and expensive direct action on CC. Oh, and cancel the NBN and throw lots of tax payers money at Telstra and Optus to do. . .something. . .about fast broadband. So say “bye bye” to the stimulus effect of the NBN and the wave of innovative new services and applications it would have made possible and say hello to continued DSL on ever degrading copper and the hell that is wireless broadband (welcome to my world, folks!) which will become ever slower as investment in any kind of network dries up and wireless bb gets increasingly slowed by congestion on the inadequate numbers of towers servicing the wireless bb.
And all this will see deleveraging by the private sector, by households and businesses, increase, further compounding the problems facing the economy and the Budget! Hello Great Depression, you were fun so we want you back for another ten years!
Tony Abbott is a fucking idiot!
Abbott’s economic illiteracy
Forum rules
Don't poop in these threads. This isn't Europe, okay? There are rules here!
Don't poop in these threads. This isn't Europe, okay? There are rules here!
-
Rainbow Moonlight
- Posts: 1463
- Joined: Tue Jun 24, 2008 5:23 pm
Re: Abbott’s economic illiteracy
How Howard sold the GST was as a part of "tax reform" which delivered tax cuts. Maybe Julia should be talking about tax reform.
-
Jovial Monk
Re: Abbott’s economic illiteracy
Fortunately, a lot of the above won’t come to pass even if the Libs get re elected in 2013.
For one thing, the agreement with Telstra and Optus plus the accelerating roll out of the NBN now agreement (starting immediately, as an interim Agreement until the shareholders and ACCC approve the deal) has been reached on the use of Telstra ducts and pits and conduit into properties. The copper CAN is just at the end of its life and has to be replaced regardless! So the stimulus effect of the NBN will be going forward and this is good on all sorts of levels.
By 2013 there will be a million people on the NBN and it will be impossible for the Libs to reverse.
I doubt Tone will be able to reverse the Carbon Tax either. Business has been crying out for certainty on the carbon price and don’t want Tone throwing a wrecking ball into the CT and carbon price that has finally, after far too much delay due to Lib bloodymindedness been reached. If the Carbon Tax or ETS had been approved under Rudd then electricity prices would not have risen as much and there would have been compensation for the ETS related rise. I blame the cynical, political-games playing Greens here as much as the stupid Libs, more so even, Turnbull and 2 Lib Senators crossed the floor but the Greens, the other CC denying Party was more interested in playing games to increase their numbers in the Senate. Well, the Greens vote is now under 10%, games can only go on for so long!
So Tone can’t do much beyond delaying the NBN a bit (and he would, being the stupid idiot he is) but won’t be able to reverse the CT. Business won’t let him.
Gawd, imagine if they were to win, the briefing from Treasury of the terrible economic troika, Abbott, Hockey and Robb. My God, those 3 idiots would be left wondering if the sky had fallen in. And then will come the realisation of the promises they made to be elected! Including to Big Tobacco. Even Lib supporters will be left wondering if they undo the plain packaging that will be in place by then, wondering about Libs reliance on tobacco money, about their commitment to improving the nation’s health.
The Libs election costings and saving plan will be shown up to be the farces they are then they realise they need to cut taxes. . . . Let us hope this farce never gets to be played out!
This years Budget was radical in its attack on middleclass welfare, raking back $22Bn in Howard boondoggles. This is $22Bn a year—two years of these savings and the NBN is more than paid for! I wish the commitment to a Budget surplus next financial year had not been given—we need the Budget to be in deficit to provide stimulus and to allow the private sector to continue its deleveraging. A Budget surplus really means a net drain of money from the private sector. However, if Howard/Costello idiocies like middleclass welfare keep being wound back then I will be content.
I don’t want to see unfunded tax cuts—tax has already been cut too much, by Costello, using the once-only money from the mining (and debt driven spending boom, more on that later) as I have already explained. If there are no unfunded income tax cuts then slowly but surely, bracket creep will be increasing both the total tax take and the share of total tax coming from income tax. That will be good! Income tax is more stable, dropping a bit in recessions but not nearly as much as company tax payments do. It is the drop in company tax payments due to the GFC that has caused the huge deficits we see. It was not the stimulus, the stimulus has paid for itself by taxes paid by the activity paid for by the stimulus and by avoiding company failures, high unemployment payments and so on.
From 2001-8 we had a mining boom, and the proceeds of this were pissed away by Howard & Costello on income tax cuts, pork barreling and middleclass welfare. But the real boom in those years was in a debt fuelled spending boom. I think it was 2006 or 7, the two-way trade just with China was $80Bn! We were sending them unprocessed ores and buying back cheap electronic goods and other rubbish. There was also a housing boom, McMansions, speculators etc etc.
Along comes the GFC and the fear of unemployment. Spending stopped, people looked at their mortgages and their credit card statements and collectively went “Oh Shit!” A boom can only go on so long! House prices can only rise while there is someone will come along and pay the inflated price. The GFC (and increasing house price non-affordability, see: http://www.polanimal.com.au/viewtopic.php?f=5&t=829) took away the people willing to pay the over-high prices.
Some homeowners, speculators etc are looking at a price decline that will see them holding negative equity—they will sell if they get half a chance! The numbers of houses on the market is increasing but the number of buyers is decreasing. Record numbers of auctions see houses passed in, 40-50% overall are passed in.
We can’t afford to elect the Libs! Fortunately, no matter how bleak the polls are, I don’t think the Libs will be. The NBN is going ahead, the Malaysian Solution will see boats no longer arrive (which is good, too many of these boats sink!) and the carbon tax is in place—Abbott will be left doing desperate stunts like reversing the Carbon Tax but not reversing the compensation. Can’t be done and Treasury will tell Tone it can’t be done.
The NBN Agreement will mark the nadir in the governments standing and it will start to improve from here on (maybe some more bad or worse polls but the momentum will be heading the govts way.) That is good. We can’t afford the gorilla in a suit that would be Abbott, PM.
For one thing, the agreement with Telstra and Optus plus the accelerating roll out of the NBN now agreement (starting immediately, as an interim Agreement until the shareholders and ACCC approve the deal) has been reached on the use of Telstra ducts and pits and conduit into properties. The copper CAN is just at the end of its life and has to be replaced regardless! So the stimulus effect of the NBN will be going forward and this is good on all sorts of levels.
By 2013 there will be a million people on the NBN and it will be impossible for the Libs to reverse.
I doubt Tone will be able to reverse the Carbon Tax either. Business has been crying out for certainty on the carbon price and don’t want Tone throwing a wrecking ball into the CT and carbon price that has finally, after far too much delay due to Lib bloodymindedness been reached. If the Carbon Tax or ETS had been approved under Rudd then electricity prices would not have risen as much and there would have been compensation for the ETS related rise. I blame the cynical, political-games playing Greens here as much as the stupid Libs, more so even, Turnbull and 2 Lib Senators crossed the floor but the Greens, the other CC denying Party was more interested in playing games to increase their numbers in the Senate. Well, the Greens vote is now under 10%, games can only go on for so long!
So Tone can’t do much beyond delaying the NBN a bit (and he would, being the stupid idiot he is) but won’t be able to reverse the CT. Business won’t let him.
Gawd, imagine if they were to win, the briefing from Treasury of the terrible economic troika, Abbott, Hockey and Robb. My God, those 3 idiots would be left wondering if the sky had fallen in. And then will come the realisation of the promises they made to be elected! Including to Big Tobacco. Even Lib supporters will be left wondering if they undo the plain packaging that will be in place by then, wondering about Libs reliance on tobacco money, about their commitment to improving the nation’s health.
The Libs election costings and saving plan will be shown up to be the farces they are then they realise they need to cut taxes. . . . Let us hope this farce never gets to be played out!
This years Budget was radical in its attack on middleclass welfare, raking back $22Bn in Howard boondoggles. This is $22Bn a year—two years of these savings and the NBN is more than paid for! I wish the commitment to a Budget surplus next financial year had not been given—we need the Budget to be in deficit to provide stimulus and to allow the private sector to continue its deleveraging. A Budget surplus really means a net drain of money from the private sector. However, if Howard/Costello idiocies like middleclass welfare keep being wound back then I will be content.
I don’t want to see unfunded tax cuts—tax has already been cut too much, by Costello, using the once-only money from the mining (and debt driven spending boom, more on that later) as I have already explained. If there are no unfunded income tax cuts then slowly but surely, bracket creep will be increasing both the total tax take and the share of total tax coming from income tax. That will be good! Income tax is more stable, dropping a bit in recessions but not nearly as much as company tax payments do. It is the drop in company tax payments due to the GFC that has caused the huge deficits we see. It was not the stimulus, the stimulus has paid for itself by taxes paid by the activity paid for by the stimulus and by avoiding company failures, high unemployment payments and so on.
From 2001-8 we had a mining boom, and the proceeds of this were pissed away by Howard & Costello on income tax cuts, pork barreling and middleclass welfare. But the real boom in those years was in a debt fuelled spending boom. I think it was 2006 or 7, the two-way trade just with China was $80Bn! We were sending them unprocessed ores and buying back cheap electronic goods and other rubbish. There was also a housing boom, McMansions, speculators etc etc.
Along comes the GFC and the fear of unemployment. Spending stopped, people looked at their mortgages and their credit card statements and collectively went “Oh Shit!” A boom can only go on so long! House prices can only rise while there is someone will come along and pay the inflated price. The GFC (and increasing house price non-affordability, see: http://www.polanimal.com.au/viewtopic.php?f=5&t=829) took away the people willing to pay the over-high prices.
Some homeowners, speculators etc are looking at a price decline that will see them holding negative equity—they will sell if they get half a chance! The numbers of houses on the market is increasing but the number of buyers is decreasing. Record numbers of auctions see houses passed in, 40-50% overall are passed in.
We can’t afford to elect the Libs! Fortunately, no matter how bleak the polls are, I don’t think the Libs will be. The NBN is going ahead, the Malaysian Solution will see boats no longer arrive (which is good, too many of these boats sink!) and the carbon tax is in place—Abbott will be left doing desperate stunts like reversing the Carbon Tax but not reversing the compensation. Can’t be done and Treasury will tell Tone it can’t be done.
The NBN Agreement will mark the nadir in the governments standing and it will start to improve from here on (maybe some more bad or worse polls but the momentum will be heading the govts way.) That is good. We can’t afford the gorilla in a suit that would be Abbott, PM.
-
Jovial Monk
Re: Abbott’s economic illiteracy
Yes. Of course, Howard didn’t say beforehand the rich would get huge tax cuts and the poor would only get bracket creep returned. But Gillard and Swan and Wong are talking about the Henry Tax Review being incorporated in the CT. The compensation of the CT is aimed not at the upper half of the income tax scale like Howard’s GST but squarely at the bottom half.
Privately, I think a large part of Rudd’s drive for the CPRS was to finally give the less well off the compensation for the GST.
I would like to see real increases to the top two tax brackets, not just bracket creep—maybe early in Labor’s third term.
The Gillard govt, tho you wouldn’t think so reading the national shit sheet (Lefty’s term
) aka The Australian, has been an active, reforming govt. well over 100 pieces of legislation passed through both houses—not bad for a minority govt without control of the Senate, eh?
Privately, I think a large part of Rudd’s drive for the CPRS was to finally give the less well off the compensation for the GST.
I would like to see real increases to the top two tax brackets, not just bracket creep—maybe early in Labor’s third term.
The Gillard govt, tho you wouldn’t think so reading the national shit sheet (Lefty’s term
) aka The Australian, has been an active, reforming govt. well over 100 pieces of legislation passed through both houses—not bad for a minority govt without control of the Senate, eh?-
Jovial Monk
Re: Abbott’s economic illiteracy
A touch of reality to Tone’s fantasy:
Yeah, I think the Libs are going to use their thoroughly discredited “savings” plan as the basis for giving even more tax cuts to the rich. Would destroy the Budget for a decade, usher in a Great Depression etc.
http://au.news.yahoo.com/thewest/a/-/br ... -tax-cuts/Prime Minister Julia Gillard has rubbished the federal opposition's plan for income tax cuts, saying it's based on the assumption "money would come out of thin air".
The government and opposition have engaged in a war of words over tax cuts.
On Saturday, Opposition Leader Tony Abbott told the Liberal Party's federal council meeting a coalition government would deliver income tax cuts that would not be used as compensation for a carbon tax.
Mr Abbott said the coalition would fund tax cuts through prudent government spending and improvements in economic productivity.
"Our tax cut will be a permanent reduction in the size of government to fund a permanent increase in people's prosperity," he said.
Voters were "not mugs" who'd be fooled by the government's plans to reduce tax to compensate for its carbon tax.
"They know that a tax reduction to compensate for a tax increase is not a cut, but a con," Mr Abbott said.
"They also know that any tax cut won't keep pace with a carbon price going up and up and up in order to force changes in the way everyone lives and works."
But Ms Gillard, who restated her government's intention to deliver tax cuts as part of the government's carbon price compensation package, said Mr Abbott's plan was baseless.
"Money doesn't grow on trees," she told reporters in Perth.
Yeah, I think the Libs are going to use their thoroughly discredited “savings” plan as the basis for giving even more tax cuts to the rich. Would destroy the Budget for a decade, usher in a Great Depression etc.
-
Jovial Monk
Re: Abbott’s economic illiteracy
The Lib Party machine, unlike its leader avoided suicide: that idiot Peter Reith will not be their President, Stockdale will continue as President of the Federal Liberal Party!
http://www.abc.net.au/news/stories/2011 ... 253386.htm
A narrow escape!
http://www.abc.net.au/news/stories/2011 ... 253386.htm
A narrow escape!
Who is online
Users browsing this forum: No registered users and 25 guests