Australians have been told for so long that cutting income tax is a great way to boost the economy that they often forget to ask why. It’s a pity
At the beginning of the Covid-19 pandemic the Morrison government was adamant that – because the economy would “snap back” once the virus passed – their stimulus spending would be temporary and targeted. Well, you don’t hear much about “snap back” anymore and there is absolutely nothing targeted about the way tens of billions of dollars are being spent by the government.
Let’s be clear, the government’s income tax cuts are perhaps the least targeted or temporary form of public spending imaginable. By definition the benefits of income tax cuts flow entirely to those with incomes above the tax-free threshold of $18,200 – which means not a cent of the benefits will go to those receiving unemployment payments. The regions with the highest unemployment rates and lowest average incomes will get the least support, despite needing it most.
Continue reading...from The Guardian https://ift.tt/2E7IxE0
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