Australian Fears

[High Fidelity]

Whoa, those companies in Australia are kinda' harsh, eh?

Companies everywhere do it. Apple are notably one of the worst. There was a news report a while ago about their factories having suicide nets to stop suicidal workers.

 

[brinny]

Companies everywhere do it. Apple are notably one of the worst. There was a news report a while ago about their factories having suicide nets to stop suicidal workers.

Then why is Australia reacting so dramatically to something happening here in America?

 

[Paidiske]

Because... as I pointed out... this is one way for the party desperately holding onto power by a fingernail* to try to bolster their position.

*I'm not exaggerating here. Read up on the current parliamentary eligibility crisis. Note the section on "implications for parliamentary majority."

 

[brinny]

Because... as I pointed out... this is one way for the party desperately holding onto power by a fingernail* to try to bolster their position.

*I'm not exaggerating here. Read up on the current parliamentary eligibility crisis. Note the section on "implications for parliamentary majority."

Yet there's the headline:

Australian Fears.

Priceless.

Time will tell.

 

[OzSpen]

"If Australia doesn’t pass its own version of the Trump tax cuts, Morrison fears the country will take a hit to its GDP of up to 1 percent. Morrison initially proposed a $65 billion tax cut, saying it would add 1 percent to Australia’s GDP. After Trump’s cut, however, Morrison warned that the cuts are necessary for the country’s economy not to contract."

Scott Morrison belongs to our Liberal party, which is (despite the name) similar in ethos to America's Republican party. They are the party of small government and low taxes.

I see this as ScoMo using anything he can to try to get political leverage for his party's policy of cutting taxes, that's all. I don't think (and I doubt he does either) that we're seriously at risk of losing jobs because of this, but that sounds scary and might buy his party a bit of political support, which they desperately need right now.

It's a political ploy.

Paidiske,

So, are you supportive of our govt's proposed tax cuts for middle income earners in 2018-19? See: Young Australians will wear the cost of Turnbull's middle-income tax cuts.

Bracket creep of tax for these middle income people is of great concern.

Oz

 

[Paidiske]

So, are you supportive of our govt's proposed tax cuts for middle income earners in 2018-19? See: Young Australians will wear the cost of Turnbull's middle-income tax cuts.

I am not well-informed enough to have a well-formed opinion on tax policy. I simply observe that that is a reasonable explanation for the treasurer's statement in this instance.

 

[OzSpen]

I am not well-informed enough to have a well-formed opinion on tax policy. I simply observe that that is a reasonable explanation for the treasurer's statement in this instance.

I use a simple budget at home and the principles for the national budget should have some resemblances. If the govt cuts off govt income by reducing tax, surely they have to make up for that with some kinds of other cuts, including public service numbers, welfare cuts, etc. The latter will backfire on the govt as I can't agree with the underprivileged and elderly missing out on pensions. After all, they have paid taxes for their adult lives (for aged pensioners) and expect to get a basic pension. For a single person, it's $894.40 a fortnight and for a couple, it's $1348.40 per fortnight.

But you and I know that Australia has a massive debt to serve 24 million people. The Australian Debt Clock tells us how quickly this debt is accumulating for govts at all levels, business and private debt. In December 2016, The Australian newspaper reported that 'the annual interest bill on federal debt will soar beyond $20 billion by 2020 as the nation counts the cost of deeper deficits, wiping out opportunities to put more cash into hospitals, schools and transport'.

There's the catch 22: The govt doesn't want to lose middle income voters so they offer them a sweetener of reduced taxes while the debt level grows into gigantic proportions. Are we heading into an Australian Financial Crisis like the GFC?

Oz

 

[Paidiske]

Maybe if we cut back on military spending (The Government will provide Defence with $34.6 billion in 2017–18 and $150.6 billion over the Forward Estimates), or ended our illegal detention of refugees (costing billions to date) we would find the pressure eased somewhat.

I'm not an economist; I tend to look at budget priorities with an eye to ethics. But even being a bear of little economical brain I reckon progress could be made on improving our budget situation.