Governments Will Increase Taxes Transcript
Industry isn’t going to do it. Industry is pulling out of power generation in this country. We’re seeing that now. AGLs, Origin, even Horizon Power in WA are all running around trying to get out of supply and You Power, they’re shutting down coal power plants.
They’re not replacing them with anything, they’re shutting down coal power. So all they’ve done in this whole budget is just increased spending, increased borrowing, moved a heap of numbers around and gone, look, we’re the best people in the world to manage your budget.
Governments are LOSING Money and Can’t Manage A Budget
A fifth grader who’s got one of those little metal piggy banks from the Commonwealth Bank. Remember those little maybe some of you are too young, but, you know, Commonwealth Bank used to have these little money boxes that they gave you at school to put money in that you would start saving.
A fifth grader using one of those could write a better budget. That’s how bad this is and it’s being lauded by some of the people in the press as a fantastic thing. I did notice that the Guardian, the bastion of all lefty newspapers, actually said that it was a pretty bad budget.
Governments HAVE to Increase Taxes
But at least they come clean halfway through the article and said it’s a pretty bad budget for those of us on the left because we didn’t get everything we wanted. So if they’re not happy with it, expect them to come out harder and harder in the media for the next budget, which will be in May.
If they’re planning to spend more money than what they’re earning, then they’re also borrowing money on top of that. Where are they going to look to actually make that money back? Is it going to be by increasing taxes? Is it going to be by printing more money or what’s your opinion?
Yeah, they’re going to have to increase taxes and they won’t…my view is the stage three tax cuts will be dead and buried. They will find some way of getting rid of them and say that they haven’t broken a promise.
Now, we all know that is crap, because really what the stage three tax cuts do is, yes, they give some people at the top end of town some tax breaks, but they’re also paying the most tax. The 5% at the top pay 80% of all income tax.
So, yes, they should have some. We should actually be going out in the street and thanking all these people for basically paying for all the services that Australians get to use.
The biggest problem with not implementing the stage free tax cuts is it means that with inflation and the drive to increase people’s wages, it’s going to move people up and create bracket creep, which means you’re going to end up paying more tax by stealth.
So they’re not going to increase your taxes. But because they’re driving this real wage policy to drive everyone’s wages up, minimum wage here and that there and all that get sounds good.
But at the end of the day, you’re going to take home less money because you’re going to move from say. The 20 cent or 18 cent tax bracket to the 27 cent tax bracket. Or you’re going to move from the 32 cent tax break to the 37 or whatever the tax brackets are now.
Now, that is not good. That’s how they’re going to drive more taxation, by build, by stealth. They’ll also do things like increase tobacco taxes, they’ll increase alcohol taxes, and a lot of those are done at the state level, but that’s how they’ll do it.
They won’t say that they’re going to directly spend. So I think at the moment, 23% 24% of the GDP is taxation and that’s how much of our GDP. So if you work out our GDP, you say a trillion dollars, 230 to 250 billion is from income tax.
The rest of it is made up. So revenue 600 billion. The other 370 billion is coming from mining loyalties and all that sort of stuff.