Wednesday, March 30, 2016

Political Suicide - Aussie Style

Turnbull has caught Little's disease.  Gob open, voice at full throttle, brain disengaged.

He is proposing a new INCOME TAX to be levied by the states.

This idiocy is to replace the spending cuts announced by the previous PM Tony Abbott.

Shorten and Co will be rubbing their hands with glee.

(For those who don't know, in Australia income tax is levied by the Commonwealth which then allocates part of it to the states.)


David said...

Adolf, your link is behind a paywall.

However, it is this knee jerk response that makes it hard to have a reasoned and rational debate about tax.

As you are not a native Skippy, I will excuse your ignorance. This is not a new tax, it is the restoration of part of the old tax system.

At the time of Federation income tax was levied by the states, as were import duties on merchandise moving between states. Federation put an end to the duties, but the States retained the right to income tax.

A Federal income tax was introduced in 1915 to fund the great Colonial War in Europe. This was a new, additional tax. The states retained their income taxes, and this two tier system continued until 1942 when the Federal government took over all income tax.

There is a need for tax reform and that can only be done with a preparedness to debate the issues. Turnbull has, until now, run away from all the other tax reform measures proposed, apart from a tax cut to his rich prick mates in the upcoming budget.

Adolf, embrace the debate and the change it can bring.

Adolf Fiinkensein said...

David. Sorry about that and thanks for the history. You'll have to fork out your $6/month to the Murdoch empire for online access to The Australian.

I'm not particularly interested in 'the debate' as you put it but, rather, the folly of going into an election with a promise of a new income tax. You can debate until you are blue in the face but nobody believes Turnbull will reduce existing taxes to compensate.

He can't, he's a socialist.

Noel said...

When Aussie first introduced "The GST" I had to tell them that from our experience it's something that becomes an excuse to raise when things get tight.

Over time many over the ditch have this perception that it's a fairer system if other taxes are removed.

He's made a decision on GST which may suggest that if alternate tax increases don't affect a majority of diggers he may get away with it.

Angry Tory said...

This idiocy is to replace the spending cuts announced by the previous PM Tony Abbott.

Right. IT's because the left has degraded everything so much that people can't even add and subtract

What Aussie needs is more, and deeper tax cuts - and more and deeper spending cuts to match.

David said...

Angry Tory needs to drop the anger and become the Educated Tory.

Everything you want above has already been tried and found wanting. We have real world experiments we can observe.

For example, Kansas.

Governor Sam Brownback eliminated income taxes on small businesses, gave huge tax breaks to the rich, cut money from the education budget, laid off thousands of government employees, heightened welfare requirements, and more.

So, how did it work out?

Kansas is BROKE.

$323 million new revenue was the forecast. $688 million loss was the result.

25,000 new jobs a year was the goal. 9,400 was the reality.

Kansas businesses are asking, no demanding, that their taxes be raised. They know that a properly funded state is a necessity for business to thrive.

Redbaiter said...

Adolf, I get your point about Turnbull being a socialist, but this is actually the start of a good idea.

I have always thought we needed states in NZ. We could then decentralise power from Wellington and likewise decentralise taxes.

The states would be bound to give some of the taxes they collected to the Feds, but only to run core services. Defence. National roads maybe. International diplomacy. Keep it as small as possible of course.

Then the states would compete with each other. States that were well governed would attract investment and people. See how it would work?

Its actually how its meant to work in the US, but the Feds have just got completely out of hand there.

As for "properly funded", we know that's just a progressive euphemism for out of control socialism. Try here-

Anonymous said...

Redbaiter.......Its very easy to take a 100,000 plus community with a large percentage of fortune 500 companies HQ's in the US and make it slightly better. In real life and across the divide it doesn't work.

Simple...if you want infrastructure you must have a high tax regime. France and Spain are bordering on socialist with high taxes but the infrastructure, rail, road, health and power generation is superb and leg of NZ lamb is cheaper than the maddest butcher trading next door to a freezing works.

You can always tell the state of a countries economy by the beauty of it's prostitutes
(who said that?) Apparently in NZ they are very attractive.

Lord Egbut

Redbaiter said...

"Simple...if you want infrastructure you must have a high tax regime."

You state this my Lord with all the fervour of an evangelist rather than anyone who is thinking rationally.

Read this.

David said...

Worried of Tauranga says that the only way to reduce the size of government is to add more layers of government and the only way to reduce the cost of tax collection is to add more levels of tax collectors. No wonder she's worried.

Anonymous said...

Redbaiter.....I speak from experience. When you actually decide to broaden your life experience and live in other countries it pays not to use trite meaningless remarks.

When you have been hammering down a motorway for five hours at 140kph and an electric train overtakes at a speed that sucks your wing mirrors off you know where the tax dollars are going. The UK, NZ Aust and US bribe the electorate with promise of low taxes and are just tinkering with an ageing infrastructure. Neither of those countries have have even a K of HS rail. The French on the other hand have long realised that low taxes lead to social disorder, basic healthcare and crime.

Lord Egbut