The revised budget deficit isn't all good news and deeper thought is needed to see it for what it really is, a compilation of high taxes and wasteful spending, despite the deficit being reduced.
Treasurer Scott Morrison yesterday announced that the commonwealth budget deficit has reduced by $4.4 billion from the forecasted budget in May of 2017. While this was lower than expected, more still needs to be done to reduce heavy taxes targeting lower income earners and unnecessary expenditures wasting taxpayers’ hard earned money.
While Mr Morrison credited this to reduced welfare and transfer payments to individuals, as professor Judith Sloan points out, increased in company tax revenue are equally responsible. Australians company tax rates are already one of the highest in the world, this cannot be relied upon as more companies move offshore.
Mr Morrison, recently specified, “We are not spending money that isn’t there”, but the way I see it, isn’t that exactly what we are doing? In the event of a repeated GFC, how would we stack up against the other developed nations globally?
In May’s budget, “Policy decisions increased taxes by 12 billion dollars over forward estimates”, so much for a fairer budget for the Australian people. Sure there are more jobs, which is always a positive point, but the government can’t hide the fact that taxes are far too high. Prominently, the six basis-point levy on 5 of Australia’s big banks (which has been conveniently reworded from ‘tax’) has ignored the trickling down effect that bank taxes have on their customers. The idea that a solution to saving taxpayers’ money is to indirectly tax them, while disguising it as ‘taxing the rich’, just goes to show how out of touch the government is with its people. Do they think we’re oblivious?
The government has also turned a blind eye to the large increases in income tax caused by bracket creeps. Most people are unaware of the stealth tax that is bracket creep. In summary, everyone’s income is taxed every year at different tax rates as their income increases, as a way of ‘creating an equal playing field’. As inflation increases, so do incomes at large, although this increase in income is automatically put in the highest income bracket. This ‘glitch’ in the system is resulting in taxpayer’s paying far too higher taxes, for literally no reason at all. Surprise, surprise, more jobs means more tax revenue for the government. Scott Morrison needs to reign in on this over taxation, after all the cost of basic living is high enough without further taxing income, of all things?!
Sure the budget deficit is substantially lower, but it’s still a deficit. Since the GFC around 2007-08, our economy has been continually running deficits, causing our debt levels to increasingly swell. The current national total debt is at $551.750 billion, this equates to approximately $71.9 million per household! 7,760,314We simply can’t keep adding to this crazy amount of spending, and we can’t keep taxing the vulnerable. When will our government wake up and realise the only way to move forward is to cut over spending and to truly ‘live within our means’.