Stage 3 tax cuts

[nut]

Interesting article

This square is the average Australian salary – see how it compares to the size of planned tax cuts

The stage 3 tax cuts are too big to fit on a single screen. We had to get creative to put them into perspective.

www.abc.net.au

Are there any economists here that are for the stage 3 tax cuts?
Why aren’t they being discussed by high paid journalists? And the affect that they might have on inflation???

 

[nut]

Can anyone argue the reason for going ahead with the tax cuts?
Will they have a massive stimulus affect and grow the economy and benefit all?
If so why not bring them forward?

Anyone ? Anyone? Bueller? Anyone? Bueller?

 

[Kwality]

fyi:
'Labor has no intention of “opening up a debate” on whether the stage-three income tax cuts should be wound back before they come into effect next year, says Patrick Gorman, the assistant minister to the Prime Minister.

Gorman told Sky News Labor further supports the legislated stage-three tax cuts and that the government’s “position hasn’t changed”.

“We’re not opening up a debate on that. We’ve said our position hasn’t changed,” he said.

“I’ve acknowledged before that when it came into the parliament, I voted for those stage-three tax cuts as part of a broader package to make sure that we didn’t hold back relief for those who were relying on those income tax cuts from stages one and two,” Gorman said.'

NSW Coalition in disarray as Nationals oust Paul Toole from leadership

NSW Nationals choose Dubbo MP Dugald Saunders as new leader; WA Mark McGowan Premier says Sydney, Melbourne to blame for inflationary pressures; Natalie Ward elected deputy NSW Liberal leader. How the day unfolded.

www.afr.com

 

[nut]

fyi:
'Labor has no intention of “opening up a debate” on whether the stage-three income tax cuts should be wound back before they come into effect next year, says Patrick Gorman, the assistant minister to the Prime Minister.

Gorman told Sky News Labor further supports the legislated stage-three tax cuts and that the government’s “position hasn’t changed”.

“We’re not opening up a debate on that. We’ve said our position hasn’t changed,” he said.

“I’ve acknowledged before that when it came into the parliament, I voted for those stage-three tax cuts as part of a broader package to make sure that we didn’t hold back relief for those who were relying on those income tax cuts from stages one and two,” Gorman said.'

NSW Coalition in disarray as Nationals oust Paul Toole from leadership

NSW Nationals choose Dubbo MP Dugald Saunders as new leader; WA Mark McGowan Premier says Sydney, Melbourne to blame for inflationary pressures; Natalie Ward elected deputy NSW Liberal leader. How the day unfolded.

www.afr.com

Surely it’s the perfect opportunity for who ever wants to be seen as the best economic managers to oppose the Tax cuts?

 

[TommyD13]

The problem is, whilst naturally a cut in taxes is going to cause some economic stimulus, it’s dissolution would affect people disproportionately.

It is often pointed out that the stage three cuts will benefit the ‘rich’, but it will also benefit the lower and middle income classes. With rising costs of living it would be absolute political suicide to reach further into people’s pockets and remove these cuts, further crippling lower and middle income earners.

Obviously in a perfect world these cuts would not go ahead just yet. Perhaps, we would’ve been better of if they had of been brought forward and ripped the Band-Aid off.

No chance they get abolished - for right or wrong reasons.

Edit: forgot to add that the abolition of the LMITO will help to offset the potential damage of an expansionary tax policy.

 

[Golden_6]

The stage 3 tax cuts should really be abolished and replaced by a different tax cut system addressing the following.

1) Either increase the tax-free threshold or reduce the tax rate on low income earnings. ALL taxpayers benefit from these measures.
2) Address bracket creep given the significant to adjust for some level of indexation.
3) Either a permanent additional tax rate on high income earners ($300k+) or a temporary budget repair levy for those above that amount.

 

[Nuggs Bunny]

Interesting article

This square is the average Australian salary – see how it compares to the size of planned tax cuts

The stage 3 tax cuts are too big to fit on a single screen. We had to get creative to put them into perspective.

www.abc.net.au

Are there any economists here that are for the stage 3 tax cuts?
Why aren’t they being discussed by high paid journalists? And the affect that they might have on inflation???

That's a really well done article.

 

[Sydney Kicker]

The problem is, whilst naturally a cut in taxes is going to cause some economic stimulus, it’s dissolution would affect people disproportionately.

It is often pointed out that the stage three cuts will benefit the ‘rich’, but it will also benefit the lower and middle income classes. With rising costs of living it would be absolute political suicide to reach further into people’s pockets and remove these cuts, further crippling lower and middle income earners.

Obviously in a perfect world these cuts would not go ahead just yet. Perhaps, we would’ve been better of if they had of been brought forward and ripped the Band-Aid off.

No chance they get abolished - for right or wrong reasons.

Edit: forgot to add that the abolition of the LMITO will help to offset the potential damage of an expansionary tax policy.

I was really crap at economics at Uni.

But if you abolish the stage 3 tax cuts, isn't it obvious the Government has more money to distribute to low income households in the form of transfer payments like Jobseeker?

 

[Theseventhhamster]

Interesting article

This square is the average Australian salary – see how it compares to the size of planned tax cuts

The stage 3 tax cuts are too big to fit on a single screen. We had to get creative to put them into perspective.

www.abc.net.au

Are there any economists here that are for the stage 3 tax cuts?
Why aren’t they being discussed by high paid journalists? And the affect that they might have on inflation???

I'm an economist and i and every other economist I talk to thinks the stage 3 cuts are ******* stupid.

 

[Cap]

I would have thought you'd find another progressive tax to replace the income tax being lost.

Increasing GST isn't going to be welcomed by anyone.

Maybe swapping Land Tax for stamp duty ?

 

[Saint]

I would have thought you'd find another progressive tax to replace the income tax being lost.

Increasing GST isn't going to be welcomed by anyone.

Maybe swapping Land Tax for stamp duty ?

Raise the corporate tax rate would hit practically the same people as the Stage 3 tax cuts (in their shares, super etc - which they hold a lot more of than lower income earners) without breaking an election promise.

 

[DickieKnee]

Pretty simple really. After the hit the economy took due to COVID we can no longer afford them.

 

[Crankyhawk]

Can anyone argue the reason for going ahead with the tax cuts?
Will they have a massive stimulus affect and grow the economy and benefit all?
If so why not bring them forward?

Anyone ? Anyone? Bueller? Anyone? Bueller?

the only argument i've seen here is "because it was a promise"
I think that circumstances hav changed
not withstanding that it was basically an extorted promise
though if the strategy is testing the waters (with basically a lot of the noise being to junk the cuts) they might take it to an election after the voice referendum... would be high risk though

 

[Crankyhawk]

The problem is, whilst naturally a cut in taxes is going to cause some economic stimulus, it’s dissolution would affect people disproportionately.

It is often pointed out that the stage three cuts will benefit the ‘rich’, but it will also benefit the lower and middle income classes. With rising costs of living it would be absolute political suicide to reach further into people’s pockets and remove these cuts, further crippling lower and middle income earners.

Obviously in a perfect world these cuts would not go ahead just yet. Perhaps, we would’ve been better of if they had of been brought forward and ripped the Band-Aid off.

No chance they get abolished - for right or wrong reasons.

Edit: forgot to add that the abolition of the LMITO will help to offset the potential damage of an expansionary tax policy.

exactly what benefit is someone on 50k a year getting? 2.5% of 5k = $125. Thats a very generous interpretation of lower class. And that is * all. $2.50 a week.
middle income - ok, lets call $100k middle income (I think i'm being fairly generous) - still only 2.5% of 55k = $1375. $27.50 a week. Its not much (though yes its more than the rise to jobseeker)

if you must have cuts (which are inflationary as well) then restrutcutre so the only cut is in that 32.5c bracket to 30c in the dollar. Make no other change. That will benefit the low and middle incomes (again, generous definitions) while limiting the largesse given to high income earners.

Like myself.

 

[Billy ray]

if they reverse the legislation that authorises the commencement of them next July 1, i will be very surprised.
what they will do at same time in next years budget is bring back the lamington

 

[Mofra]

Simplifying the tax system by removing one of the thresholds is actually a positive.
It's the weighting of the cuts towards to top bracket which is problematic.
Reducing the scale of the cuts and redirecting some of those funds to the lowest income earners in society seems a far fairer policy

 

[HurleyHepsHird]

Labor aren't going to budge because ultimately it serves their class interest and gives a convenient excuse as to why they can't do more to fix the broken housing market, safety net, medicare etc.

 

[nut]

Is anyone going to ask Dutton about stage 3 tax cut?

 

[Deccas]

Labor aren't going to budge because ultimately it serves their class interest and gives a convenient excuse as to why they can't do more to fix the broken housing market, safety net, medicare etc.

This is spot on imo. Got them dead to rights

 

[Deccas]

The problem is, whilst naturally a cut in taxes is going to cause some economic stimulus, it’s dissolution would affect people disproportionately.

It is often pointed out that the stage three cuts will benefit the ‘rich’, but it will also benefit the lower and middle income classes. With rising costs of living it would be absolute political suicide to reach further into people’s pockets and remove these cuts, further crippling lower and middle income earners.

Obviously in a perfect world these cuts would not go ahead just yet. Perhaps, we would’ve been better of if they had of been brought forward and ripped the Band-Aid off.

No chance they get abolished - for right or wrong reasons.

Edit: forgot to add that the abolition of the LMITO will help to offset the potential damage of an expansionary tax policy.

This is kinda BS imo. Like if it would be politically difficult to deal with because people are feeling the pinch surely and extra spending of 254 Billion dollars could make up for that?

 

[Crankyhawk]

Labor aren't going to budge because ultimately it serves their class interest and gives a convenient excuse as to why they can't do more to fix the broken housing market, safety net, medicare etc.

Then graffiti branch offices (except those saying end stage 3)

 

[Crankyhawk]

Also intend to be trying to get on talkback and basically impugn the motives of presenters for not pressing this issue. The appearance that they are motivated by self interest

 

[Kwality]

the only argument i've seen here is "because it was a promise"
I think that circumstances hav changed
not withstanding that it was basically an extorted promise
though if the strategy is testing the waters (with basically a lot of the noise being to junk the cuts) they might take it to an election after the voice referendum... would be high risk though

They can walk back the promise at the next election without any consequences.

 

[Billy ray]

i dont have a problem with someone currently paying $60k per annum in tax and medicare levy paying $51k - thats still a lot of tax to pay


runs and ducks for cover

 

[Crankyhawk]

i dont have a problem with someone currently paying $60k per annum in tax and medicare levy paying $51k - thats still a lot of tax to pay


runs and ducks for cover

It’s inflationary
It’s not econically sustainable from a budget point of view
We have other spending priorities
The Uber rich types (read high income types) will just invest eg drive up asset prices including housing

I can’t think of any good reason to do it.
Even the $9k I would pocket - nope.
But there’s crickets from media because they too are gonna get $9k