Federal Labor looks set to head into the election, due next year, with plenty of cash to splash on their election promises, according to the Parliamentary Budget Office.
But where’s the money coming from? Sadly, its from you, me and future generations.
According to a report in The Australian, the independent Parliamentary Budget Office found:
“Eight new Labor tax measures — headlined by the clamps on negative gearing, trusts and dividend imputation — are expected to raise about $30bn over the four-year budget period and almost $160bn over a decade.
Labor’s medium-term budget position is boosted by a further $122bn after it decided to oppose personal income tax cuts set out in this year’s budget that would take effect after 2022…”
So higher taxes and scrapping personal tax cuts are Bill Shorten’s answer to low wage grow and out of control utility costs.
The report outlined how Labor is going into the federal election campaign with more than $250 billion more to spend than the Coalition, thanks to their tax grabs.
When Labor makes their lavish election promises or does deals to help their union mates, remember where the money is coming from - mainstream Australians.
Labor’s share tax which hits retirees hard is a case in point - about 84% of those affected across Australia have a taxable income of less than $37,000. 96% of those affected have a taxable income of less than $87,000. Hardly millionaires.
And the other thing to remember is that Labor just can’t manage money. The last time that Labor delivered a balanced budget was over 25 years ago!