The Forum > Article Comments > Policy bombshell has backfired > Comments
Policy bombshell has backfired : Comments
By Graham Young, published 20/8/2010It seems counterintuitive that voters would spurn a more generous Liberal paid parental leave, but there are good reasons why.
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The question has therefore shifted to ... why should rich mums with high incomes receive so much more subsidy than poor mums?
A lot of so-called "middle class welfare" is really just incentive tax relief for high tax payers to change their behaviour - such as choosing private schools or private health insurance instead of placing an even bigger burden on publicly funded options.
But full income continuance stretches the credibility of this concept. A parent staying at home has time to cook, and doesn't need to eat at a restaurant or drink Grange every night. The only reason a rich mum needs more subsidy than a poor mum, is to keep making bigger mortgage payments on a fancier home.
This is welfare targetted as precisely as possible towards matching the prices of people's homes - or as close as you can target it, without making it any more obvious. And as we know from the first home owners grant, subsidies aimed at house purchasers end up being subsidies for house vendors and bank shareholders.
Both the Labor and Liberal PPL schemes would enable battlers to have babies and still eat without saving up or making sacrifices. The difference is, Tony Abbott's scheme would subsidize house prices - which are already subsidized up to their necks - making homes even more unaffordable.