The Coalition has today adopted a shock-and-awe tactic to kick-start its election campaign: promised income tax cuts to cost $34 billion over three years, accompanied by aspirational talk of an Australia in which 98 per cent pay a marginal tax rate of 35 per cent or less. I won’t presume to discuss the promise’s target market at this point, but it should be noted that tax cuts at the past two budgets produced largely disappointing returns in the opinion polls (although the more recent round can be credited with a slight narrowing in Labor’s lead in August and September). Nonetheless, the announcement will fill the news bulletins with images of Peter Costello in his element, whereas Kevin Rudd will be forced to discuss those tax scales he couldn’t name a few weeks ago.
Centre-left economist John Quiggin makes the following observation on the troubled history of election tax cut promises:
I can recall (perhaps with error) at least two instances of such cuts being promised and then taken back. One was Paul Keating’s L-A-W tax cuts in 1993, which (as implied) were actually legislated in an attempt to increase their credibility. The other was the “Fistful of Dollars” tax cut of 1977 (so named for the ads which showed precisely that) promised by the Fraser-Lynch team going into the election and then (if my fading memory serves) taken back by Lynch’s newly-appointed replacement. Now what was his name again?
Possum @ 81
Well said about tax cuts and Work Choices, but even for those not yet affected by Work Choices the main point is the mega surpluses and proposed tax cuts are finaced by cutting funding to essential services.
The main benefit of the tax cuts are as usual in the high income tax bracket and the piddling amount that trickles down to the others will be swamped by increased health, education, petrol and interest costs.
What was it Amanda said, a milkshake and a hamburgher.
[Joe Ludwig was part of the AWU just like dad. ]
He was also a barrister. Or doesn’t that count because he isn’t a member of the Liberal party?
AG01 & ShowsOn
“Glen” asked me to let you all know he would be busy in the Senator’s office this week and might be a bit delayed with the blogging. He is hoping to organise “Tabitha” to come on this week to pull blog duty.
Who cares if the Labor Party has a team full of ex unionists.. these are people who helped and provided holidays, sick leave, mininum rates of pay, and health and safety within the workplace but oh.. they are so bad Edward St John… people who give to people their livelihoods…
Howard was worse than I had hoped for. He is resentful of being questioned and is allowing his intolerance to show through. Forget the Howard myth, the guy is 68 yrs old, used to being treated with reverence and not used to being grilled so hard, he is not handling it well at all.
This is going to be a great campaign, 6 weeks is a long time and Rudd is going to push him very hard all the way, I can’t see Howard holding up.
where is Labor’s tax policy?
They will be pulling something, that is for certain!
Labcest is Labcest Marky Marky what ever you call it.
As a Green I would have thought you would want it exposed and dealt with.
Harry Organs,
You are welcome to disagree. I just called it as I saw it. Just gave my honest opinion which seems to increasingly be a sin on this site.
[where is Labor’s tax policy?]
What’s the current interest rate?
Edward can I ask what you do for a living?
Possum, he got the headline, but completely stuffed up the T.V. follow up. If a fluff from ACA can trip him up, he’s cactus.
I like to think of myself as a renaissance man AG01.
“where is Labor’s tax policy?”
Waiting for an apropriate time. :0
Am I the only one who wishes KR would stop saying ‘Education revolution’? I know the idea is to keep it broad to people can decide for themselves what that means, but that’s so broad it doesn’t mean anything.
Yes I know what Labor’s policy is and it’s good, but to the average punter KR may as well make up a word and then keep saying it every second sentence.
Glen what is the current interest rate?
Your PM has no Idea?
So Howard has been done over by Tara Brown and Tracey Grimshaw in successive nights.
Apparently, Laura Bingle is up next.
How’s he going to go when the serious questioning begins.
Might be time to put the old dog down eh!
I suppose when you are “squatting”you don’t need to know the current interest rate.
Why do you need a policy on tax? Why do you have to keep giving tax cuts?
[Bad footwork by ABC researchers not to be across Howard’s ACA blooper to follow up in Kerry O’Brien interview (which I think is live).]
I’m pretty sure Antony Green said that because of Daylight Savings in Tasmania – the 7.30 Report is done live at 6.30 so it goes to Tassie first, then is replayed nationally for the East Coast (we’re two hours behind in WA so that’s a rather moot point for us 🙂
Time to meet the Jesus people!
# 106 Glen Says: October 15th, 2007 at 8:20 pm
Where is the report on the actual impact of workchoices that the liberal government refuses to release?
The PM has no idea on the current interest rate.
That’s probaly why he doesn’t care if he pushes them up further, it doesn’t affect him.
[ I like to think of myself as a renaissance man ]
Edward,
Do they pay you for that?
ESJ says ‘I like to think of myself as a renaissance man AG01.’
– priceless Eddy. I ask this question as so I can figure out if you got your feet in the ‘real world’ !
Since you are a ‘ renaissance man’ then I take it you will VOTE 1 Kevin Rudd.
ESJ,
Please out yourself again. It is unworthy to lead others on.
Paul K. , was just disagreeing, don’t think it’s a sin. I would have thought one of the fantastic things about the site that William provides, is that there are a range of people who can contribute who have something meaningful to say. Personally, I often keep my fingers off the keyboard, and simply read/listen, sometimes, when invited by another blogger to comment on what they’ve said, such as yourself, if I’ve observed something different, I’ll say so. No sin, either way, just dialogue, vs. the sometimes amusing slanging match that sometimes erupts. Cheezus (see Kath & Kim) it’s politics.
Paul K,
Two points:
1. I support your right to free speech, I too have detected the current of intolerance and pseudo Stalinism on this blog. It must be fought.
2. There is work for anybody who is able bodied in Australia regardless of what their skills are. Structural unemployment is a different story ie for the disabled, ill, certain racial groups etc.
I missed ACA – an oversight I deliberately commit regularly I’ve got to admit
Can anyone give me a quick overview of Howards bungle and how it played?
Howard still understands productivity and the tax rates something that Rudd has no conception of…one could forgive a slip of .25% rather than creating new tax thresholds that dont exist lol.
Where is Labor’s tax policy?
No tax policy no Government!
[ There is work for anybody who is able bodied in Australia ]
Edward,
So does that mean you are paid to be a Renaissance Man? How do I get a job like that?
Please dont bait us ESJ…poor tactics I’m still remember when you said one of my Blogs was from North Korea.
Rudd did his interview second so he knew the question was coming and was looking at a cheat sheet when he was asked what were interest rates…
Howard on the news tonight making his best attempt to sound convincing on future plans for Workchoices reminded me way too much of Nixon’s “I am not a crook”.
I think the tax cut promise will be met with a fair bit of scepticism by the community (too close to polling day). The Liberals probably think that by putting out their policy they’ve increased the pressure on Labor. IMO, they blinked and have given Labor the chance to match it or get close now, with the benefit of seeing their costings and assumptions.
I don’t want to get personal, but having Costello at the launch devalued it for them. As competent as he is, Costello always looks to pleased with himself, which won’t play well with the taxpayers.
The gallery seem to be thinking that this a big campaign hit and just what Howard needed. Time will tell…..
[ I’m pretty sure Antony Green said that because of Daylight Savings in Tasmania – the 7.30 Report is done live at 6.30 so it goes to Tassie first, then is replayed nationally for the East Coast (we’re two hours behind in WA so that’s a rather moot point for us ]
Ah, that would also explain why the video streams were already available online while I was watching the show.
[cross posted on http://possumcomitatus.wordpress.com/%5D
Right now at SMH/Age/Brisbane Times, the tax story is not in the top 5 on any of them – and that includes stories posted after 5pm today (shark story at Herald)
At the Australian, it’s the number 2 story, less of a surprise, but still not #1, and while ‘Rudd in trouble in Qld’ is #1 at the Courier Mail, the tax story doesn’t rate on any of the other News Properties
That doesn’t look like a knock out punch to me.
j
GG – out myself? I dont understand. As to my s.xuality?
Possum,
Tracey and her investigators walked in on his electoral office and asked if he was selling dodgy old policies as new. Apparently, Howard put his hand over his face and raced to a COM car which raced off at high speed narrowly missing the the reporter and the assorted representatives of the media. Apparently, a camera man has feigned an injury and is demanding an apology, compensation and a chance to tell the world how much his life has been tranformed by the trauma.
Shame, Howard, Shame.
[Howard still understands productivity ]
It seems his economics adviser is Traci Grimshaw, because she has to tell him what the interest rate is. I guess he will call her on November 7th so he knows what the new rate is.
[Can anyone give me a quick overview of Howards bungle and how it played?]
Traci Grimshaw asked him what the current intrest rate is. Howard said 6.25%. Traci Grim Shaw said “it is actually 6.5%”
[Rudd did his interview second so he knew the question was coming and was looking at a cheat sheet when he was asked what were interest rates…]
No need to make up lies Glen. Howard was caught out fair and square.
Frankly, I don’t give a ducks nuts about tax policy
I’m perfectly happy with how the government collects money, I’m more interested in how they SPEND it.
The more they give back to me, the less likely I am to have my son seen in a timely manner at an emergency department at 3am on a Saturday.
I don’t know about you, but I’d pay $15 a week to make sure that base was covered.
Possum – it played bad, real bad. It’s the one thing he ought know.
You’d expect some further coverage tomorrow, but then again the campaign caravan will roll on quickly.
[ 138 Greeensborough Growler ]
GG, that was pretty funny. LOL.
I am impressed. Rather than a knee jerk reaction, Labor is being sensibly measured in its policy response to today’s Coalition tax splurge, hopefully allowing this issue to dissipate within the coming weeks.
Monday October 15, 08:07 PM
Howard stumbles with interest rate gaffe
http://au.news.yahoo.com/071015/2/14oi1.html
In the first stumble of the 2007 federal election, Prime Minister John Howard has failed in a television interview to correctly state the Reserve Bank of Australia’s official interest rate.
The reserve bank’s official rate was increased to 6.5 per cent in August this year – the fifth rate rise of a quarter of a percentage point since the 2004 election.
But when asked at the end of a Nine Network interview on Monday night if he could nominate the reserve bank’s official rate, Mr Howard answered: “It’s 6.25 per cent”.
In a separate interview on Nine aired shortly after, Opposition Leader Kevin Rudd correctly quoted the figure of 6.5 per cent.
You can rewatch Howard’s gaffe here:
http://ninemsn.video.msn.com/v/en-au/v.htm?t=m164
You have to watch an advert first though.
Glen at 130 said:
“Howard still understands productivity”
Howard and Costello combined wouldnt know one end of a data envelopment analysis from the other end of stochastic frontier analysis.
(insert economist joke)
Although they do seem to have an interesting treatment of slacks, usually by promoting them into such auspicious places as the Ministry for Gallipoli Theme Parks.
Thanks Arthur: are you saying the reason Howard left the writs open 3 days was so it can say Labor is reneging on an established ‘government ‘policy?
The caretaker convention is so loose it is not even clear when it commences. Stephen Bartos, presumably relying on public service manuals, says it doesn’t commence till the writs issue and hence the campaign officially begins. Understandably the PS needs a certain date and due notice. But in reality the campaign officially began with the PM’s announcement, and the proroguing of Parlt today in that context is the withdrawal not just of legislative power, but of the PM’s ability to prove support in the Reps. That’s certainty enough for the PS to enter ‘caretaker’ mode.
Nothing aside from that convention stands in the way of the Executive deciding today to send a letter on government letterhead to all Australians promoting the tax policy,the letter of course to go out during the campaign. Labor could jump up and down to stir resentment, but Howard would already have his obfuscation ‘it was a govt decision on govt policy made before he writs issued’
Huh, he’s a lib, it’s what they do.
Glen, what exactly is the relationship between productivity and tax rates.