Release: Cut both regulation and taxes to fix slumping economy
The Australian Taxpayers’ Alliance, a 75,000+ member grassroots advocacy group representing the nation’s taxpayers, today called for further tax cuts and a rollback of expensive regulation in order to simulate the Australian economy after Reserve Bank warnings.
“When it comes to stimulating the economy, Australia doesn’t need to flood itself with more artificially cheap credit. It needs to reduce burdensome regulations in order to benefit our hardworking businesses and the consumers they serve.” said ATA Communications Manager, Emilie Dye. “Businesses are not going to grow or become more competitive when they are burdened by high taxes and expensive regulation, especially in a risky economy.”
“Critics seem to think that it’s bad news that PM Morrison’s $1,080 tax offsets haven’t been followed by an immediate spike in consumer spending. However, this isn’t bad. Saving is just deferred spending and individuals who save, ultimately stimulate the economy two-fold.
“Right now, the biggest damper on capital investment is excessive regulation which costs businesses time and money- costs that ultimately hurt the consumer. Small businesses suffer the most as they do not have the resources to hire experts and lawyers for managing compliance. Monolithic corporations and crony capitalists are the only ones who benefit from burdensome regulations which squash their competition.
“Regulation cuts stimulate the economy by leaving businesses with more money to expand, hire people or increase their wages. And while tax cuts are great too, regulation cuts do not hurt the budget bottomline and can even provide a net increase in revenue for the government.
“There is no reason why the Morrison government shouldn’t act now by cutting regulations to deliver the kind of productivity-boosting structural reform that economists have been calling for for years.”