JON,

There was also a study by the UN that fingered the Syrian rebels for using nerve gas.

There are always idiots in organisations that will put out stupid reports.

Notably at this time there were surpluses, full employment, and government infrastructure projects would have pushed up inflation and interest rates.

James O'Neill "It is not just a question of how much tax is collected as a percentage of GDP but how those taxes are spent. There is nothing in the record of any government over the past 18 years to inspire confidence that that fundamental principle has been learnt."

The present government as well as the previous Labor mob seem to be hell bent on handing back a lot of taxes in order to bribe the gullible electorate. If we are to survive into the future, we need to be paying a considerably larger amount into the government's coffers to pay for the multitude of services we need. Hockey is right to be targeting government waste, but he needs to be careful that he doesn't become too zealous. His Liberal colleagues also need to be mindful of the power that the supermarket giants wield in the food supply chain lest they force all the farmers off the land with their predatory pricing tactics. The Nats may well turn upon their masters if some sort of help is not given to companies like SPC-Ardmona or the drought affected hinterlands.

At the same time, the great unwashed out there needs to realise that they can no longer afford (actually never could afford) the standard of living to which they aspire and they should be paying higher personal income taxes.

David

How many times do we have to repeat the basic principles of Australian democracy, which are ignored at politicians' peril.

These four principles apply to all governments and are:

1. The government is the enemy of the people.

2. No taxation with or without representation, with any deficiency in government finances being made up from the sale of politicians' assets.

3. No matter whom you vote for, a politician is always elected.

4. Always vote NO at referendums.

Those who have commented do not seem to accept that, for the economy to grow in population and in economic size, more money is needed most years. That money can only be introduced into the economy by spending by the currency controller. In Australia that is the Federal Government.

If that government consistently runs a surplus the citizens and companies in the private sector are forced to borrow temporary money created by the banks. Sooner or later the private sector runs out of borrowing capacity and a downturn occurs as the private sector members struggle to rebalance their individual budgets.

In November last, a fiscal space diagram was shown as a slide in a presentation by Dr Stephanie Kelton at a meeting of the Fields Institute, Toronto, Canada. For the whole of the time Howard managed the Australian economy he did so at least marginally within the unsustainable area of that fiscal space diagram. So did many other neo-liberal governments so the GFC was bound to occur.

The Federal Government's principle task should be to ensure that there is a fulltime job available for anyone capable of working at such a job. The government has the ability to pay the account for anything it purchases to achieve that aim be that labour or materials. The government spends first and then monitors the economy to see that boom times are not making it necessary to tax more its created money out of existence.

When your employer deducts tax from your wage you build up a credit with the Tax Department. That credit is only government IOUs. When your tax return is assessed the balance returns to zero and you get any surplus as a cheque (or a credit to your bank account). What value do IOUs have to the entity who created them? None!

All of Hockey's comments on the government running out of money is nonsense. The government ability to create IOUs is only limited by what is for sale in exchange for those IOUS and whether there is excess demand of goods and services in the economy.

If our Govt created the money to = growth + inflation, our taxes would decrease by more than $10,000 for every working person.

Growth and inflation should not be expressed as debt by the private banking system.

Let's keep in mind this article is coming from a person who co-authored 'research' suggesting the ABC is Rightwing.

Leigh's dishonest and deceitful suggestion Australia is low taxed is disgraceful. OECD stats are always trotted out to suggest this garbage neglecting to mention high taxed Europe is over-weighted in the results.

Lets also not forget Leigh ran on a platform supporting more APS staff.

He's a disgrace.