Whether it’s a generational issue or a reflection of how many journalists are inclined towards Labor ideology, the observations of noted economist Robert Gottliebsen in relation to young journalists in the Budget lock up are concerning.
They also point to an argument that can work in revealing the inherent unfairness of Labor’s plan to hit the incomes of retirees.
From this morning’s The Australian:
“In the final half-hour of the budget lock up I discovered how hard it is for the older generation to convince their children that the ALP’s retirement and pensioner tax on cash franking credits is grossly unfair….
Chris Bowen has sold the younger generation the proposition that stopping cash franking credits is fair. So they are not listening to their parents or anyone else.
Many younger people do not understand franking credits and their real issue is that they believe that, compared to them, the older generation is being treated too generously including being able to save large sums in super. That’s why they don’t listen to their parents’ protests…..
But I did strike a chord when I pointed out that since federation we had always taxed people of the same age, with the same assets and income in the same way. Chris Bowen’s retirement and pensioner tax breaks that mould. They could not believe Chris Bowen would do that let alone include pensioners in his net. They hadn’t read my material.
And so I related what my readers have read so often: people who save via industry and some retail superannuation funds receive their cash franking credits and those who save elsewhere, including some retail funds and self-managed funds do not receive their cash franking credits entitlements.
For the first time in our history we are taxing people on the basis of who manages their money and not on the basis of their assets and income.
And some pensioners get punished if they saved via a self-managed fund and are entitled to a part pension. Under Labor’s original announcement, they are to be taxed if they did not register for the pension by the end of March last year. ALP politicians tell “fibs” when they say pensioners are immune unless it is planned to change the rules.
All that resonated and some of the journalists could see the tax was clearly unfair.”
It’s important that younger voters are informed not just about the unfairness of Labor’s plan but also about the impact that Labor’s Retiree Tax will have on the income of their Parents and Grandparents – and the potential flow-on effect to them. The fact is, Labor’s policy will be felt through the generations.
Unfortunately pitting one group of Australians against another group of Australians is what Labor and the left-wing activists do best. As Gottliebsen observed, Labor’s justification of their policy hit on retirees is yet another example of their divide and conquer mentality.