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The Forum > Article Comments > Federal Election: The Great Tax Cuts Swindle > Comments

Federal Election: The Great Tax Cuts Swindle : Comments

By Ian McAuley, published 24/10/2007

The Coalition's proposed "radical" tax cuts are in reality quite modest

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The great tax cuts swindle is so aptly called. This follows on from the recent stage managed “great debate” between Labor and Liberal with a hand picked audience of hand raisers from the party faithful. No other parties or candidates were allowed to participate and above all there was to be no embarrassing questions from the audience. Behind the rhetoric each was vying over who could claim the mantle of “economic conservative” and who would be the most effective in carrying through the next round of ruthless attacks on workers and the crucial social services. Rudd failed to justify or explain why he had just matched Howard’s election promise of a massive tax cut rather than allocating billions to critically needed public services. Despite a recent poll whereby there was an overwhelming, repeat overwhelming, demand for excess tax dollars to fix up the social infrastructure - it is not going to happen. In fact, the social infrastructure is to be run down further to make it easier to privatize essential public assets. Regardless, of whether people are denied crucial health care or operations. Irrespective, of people including the young and the aged needlessly suffering or dying because of the cunningly crafted long waiting lists that produce maximum charges; desperate people will pay up big. Any money allocated for the hospitals will be a part of the private health care agenda and working to further undermine public health care. A similar process for education after the elections are over, the privatization process will be in full swing and deepened. This is a two edged sword, whereby, the tax benefits will go overwhelmingly to the rich and continue the driving down of the living standards of the immense majority into levels of poverty - so low, that most cannot imagine.
Posted by johncee1945, Wednesday, 24 October 2007 6:18:29 PM
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From what I am led to believe, the revised figures are to compensate for "bracket creep" and assuming that everyone gets an increase equal to CPI.

Well in the worst case you will pay 1% less tax, but most people will benefit more.

Most labor governments have essentially increased tax after bracket creep. Rudd's tax policy will give me a fat 0% after bracket creep.

Who will I vote for now? MMM
Posted by Shadow Minister, Wednesday, 24 October 2007 6:41:15 PM
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Once again the FACTS are nothing like the RHETORIC. A friend of mine has been in a wheelchair from a hospital operation for over 30 years.He had sued the hospital as he had reasonable grounds that it was a stuff-up.Cost several thousands to no avail. Got on with his business and yet over 20 years ended with a $50 K loss.Wife had to go back to work despite a debilitating illness. He received no pension and has been a dependent of his wife.When he lost his incontinence allowance of $400 p.a. on turning 65, I wrote to both parties,Liberal and Labor,the reply was the same "We are looking at it." Just recently after 10 years it has been restored."Will I get the tax back I paid before the loss? he joked!" When I show her your graph I expect some response like "They can stick it!"
Posted by TINMAN, Wednesday, 24 October 2007 7:08:40 PM
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Why does everyone continue to expect that their living standard has to increase continually? I am baffled. The arrival of peak oil, coupled with the need to bring in a carbon tax, means that the standard of living has to be REDUCED. Moreover, as low income workers consume far more petrol than many people in more affluent suburbs closer to good public transport, the standard of living of the lowly paid must be reduced more than that of the wealthy. These are logical outcomes of the world situation. In addition, we will most probably have our foreign debt called in over the next year or so, destroying those foolish enough to get themselves deep in debt. Is this so difficult to understand? Why do people blame the banks? Do they think they are charitable institutions? For heavens sake get real.

The reality is that we are living on a knife-edge, that the next middle east war is likely to be nuclear, and that means there will be no more oil. No-one knows when the balloon will go up, but it can't be long now.

Makes you wonder why politicians are so keen to get elected, when the world prospects are so ominous.
Posted by plerdsus, Wednesday, 24 October 2007 8:28:53 PM
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its not so much as my standard of living INCREASING, I would like my and and my husband measly income of $25tpa for him and $20000 just to keep up, though it never will. I used to have a very good income, but due to work injury, that is now blown apart. The only thing that is increasing is my mortgage rates, fuel and the cost of groceries. Sorry to the previous poster, I do use more fuel, for one reason lack of accessible reliable public transport. The bus's are unrealiable, unaccessible and way way way too expensive. So I drive, I drive frugely, but it means I can get my tasks done as needed and in the most efficient way possible.
Posted by zahira, Wednesday, 24 October 2007 11:32:02 PM
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still waiting for godot, are you?

find out how democracy works, create an australian democracy, and take charge of your destiny.

or you could just continue to sit on yer bum and whinge.
Posted by DEMOS, Thursday, 25 October 2007 7:09:58 AM
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Can anyone get hold of the excel spreadsheet.

This article would have been better if the labour policy had been analyses too.
Posted by miner, Thursday, 25 October 2007 7:41:11 AM
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You can access the excel file on the New Matilda site here:
http://www.newmatilda.com/home/articledetail.asp?ArticleID=2528
Posted by Grifter, Thursday, 25 October 2007 2:56:48 PM
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well, Demos I am far from sitting on my derrière doing nothing but whinge. I have gone back to uni to re-train and hopefully be able to go back to work. I have a long-term severe pain disability, but I keep going somehow. Where I live, alternative jobs opportunities for people with my type of disability are rare, but you know what, I still out there giving it a go. I certainly could jump up and down and whinge quite rightfully, because of the way I was mistreated by my so-called workers compensation and that I needed to have $10,000 to fight them in court, but I didn't, so you put it down to experience and move on. But, there two ways I can take this circumstance, sit on my derrière and whinge or pick myself up, dust myself off and keeping going forward and that's what I've chose to do. So please don't judge someone before you've walked a mile in their shoes!
Posted by zahira, Thursday, 25 October 2007 10:15:24 PM
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Thanks Grifter,

the following is the coalition and labor tax policies superimposed on the one chart. (NB the Labor Party has helpfully removed it's tax policy from their website. Maybe they should just have a link to the Liberal webpage. Only joking.)

Dammit, does anyone know how to show a chart on this?

The two increases in after tax income at the same up to approx $175K per year, so there appears to be no difference between the two parties. Above $175k the labor policy increase in after tax income drops from approx 3.5% to 2.5% at $250k income, while the coalition policy rises slightly from 3.5% at 175K to 4% at $250k.

There is no difference between the two policies for the 97% of people on less than $180k per year.
Posted by miner, Friday, 26 October 2007 10:14:25 AM
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No one wants to really address the cause of our woes as this would actually require treating the disease rather than the symptoms. So instead, the pollies just dole out more meds (election money promises) and most everyone seems happy about it.

Its ironic how we measure standards of living. lt more akin to standards of pointless toil and work in the pursuit of more stuff. Australians work some of the longest hours in the world. Work/Balance is a pipe dream for most. Folks are rushing from nothing to nowhere, stressing themselves into an early grave.

Its an ambitious race to the bottom.

Take so-called climate change. No one wants to address the wanton consumerist ethos thats driving us in that direction. Its all about making 'less' poluting choices, carban trading/tax/offest schemes which essentially gives one the ability to pay for pollution. Like Al Bore, he just pays for his overblown carbon output. Instead of doing the obvious, like living in one house instead of three, not scooting about in private jets, giving away 7 of his 8 LCD tvs, etc. This is widely symptomatic.

The only answer is consume less, MUCH less.

And start looking at ways that truely improve our standard of living, ways that eschew buying, owning, accumulating more future landfill. Start looking at ways to be satisfied with life that doesnt make one an addict of status anxiety.

Ultimately, the stuff of life that increases standard of living isnt material. Its people, relationships, family, community, sprituality, intelligence, interest, curiousity, nature, love. Ya know, all that stuff thats considered a bit glib and tacky these daze.

Give it a go. You will see how pointless the pursuit of nothingness really is.

In the meantime, we can complain about it on the web and complain about the complaints of the complainers. DEMOnstrate the irony.
Posted by trade215, Monday, 29 October 2007 12:56:35 PM
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