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New budget had potential to return surplus if not for Liberal tax cuts

The Australian Institute has estimated the budget would be A$38 billion healthier if not for Howard-Costello government tax cuts.

Additional tax cuts were put forward in the lead up to the 2007 election, which were passed by the Rudd-Swan government.

The report says that the top 10% of income earners are now better off by A$16 billion.

Read more at The Australian Institute

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2 Comments sorted by

  1. Greg North

    Retired Engineer

    I think at some stage with current financial management we need to get past what Howard/Costello were doing six and more years ago when they started from having been left with a huge deficit/debt and with an improving economy, budgetted accordingly.

    Labor has had the opportunity to raise taxes and their policy for additional spending because of the GFC provided as good an environment as ever in which to do it.
    That they have increased the Medicare levy to partially fund the NDIS begs the broader…

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  2. Lee Emmett

    Guest House Manager

    Richard Denniss writes elsewhere in The Conversation:

    Howard-Costello's ... 'income tax cuts were also heavily skewed to high income earners. Over the past seven years they have cost the budget $169 billion, of which 43% or $71 billion went to the top 10% of income earners. This was more than the total benefit of tax cuts to the bottom 80%, who together received only $63 billion.'

    This says it all, and these facts should be put before the electorate!