Why not raise taxes to slow inflation?

[nut]

The Covid stimulus is regarded as the main driver of inflation. Our national debt increased by 300 Billion.
The answer at the moment is simply to increase interest rates to combat inflation and push unemployment up… . banks are licking their lips.

Why?

Why punish a third of the population who have mortgages? Why punish Business and cause job losses?

Why not spread the burden and increase taxes on those that can afford it? Those that are benefiting the most from inflation…

 

[royale with cheese]

Because tax mechanisms are too slow to work and easy to dodge.

 

[sataris]

Those that can afford it don't pay any taxes.

 

[nut]

Because tax mechanisms are too slow to work and easy to dodge.

The Current method will take until 2026…

Why not fast track it with increased taxes and lowering national debt at the same time…???

Why are the banks the only ones benefiting from interest rises? Which is causing stress to communities?

 

[Hank Scorpion]

Because the government is hopelessly scared of doing anything that might rock the boat or can be spun into a bad headline. Even with unfettered political capital and after a decade of regression, they'd rather abandon the people who put them there.

As I understand, there's nothing wrong in practice with your suggestion.

We're in the exact reverse of LNP years pre-covid; when inflation was below target and the RBA was practically begging them to loosen fiscal policy.

Stage 3 is only going to make this worse.

 

[nut]

Raising Interest rates also puts pressure on businesses to raise prices to recoup costs of borrowing capital… or they cut jobs…

So really it’s not about fighting inflation it’s about creating unemployment …

Unemployment is the real issue… they want to increase unemployment to keep wages down.

 

[evolved2]

Why do you want sensible people like myself, who've lived by our means and paid off our homes, to be punished for being prudent?

 

[Big Papa Ted]

Why do you want sensible people like myself, who've lived by our means and paid off our homes, to be punished for being prudent?

How does increasing taxation relate to that? It's tied to income, not assets

 

[evolved2]

How does increasing taxation relate to that? It's tied to income, not assets

nut wants the financial burden to be shared by all taxpayers rather than people with mortgages. I presume he has a mortgage and wants his burden to be shared by others, so it's a selfish thread.

Afaik I didn't support or contribute to policies that resulted in runaway inflation, so I feel no responsibility for it.

I'm sitting back enjoying the shitshow from the sidelines of the home I own. It's glorious.

 

[Cap]

Oh, this is another right wing are less intelligent threads is it?

Well played nut you got them responding without even making the thread title controversial.

But It would be great if we had more than one lever to pull for inflation. Be interesting what happens if the new RBA structure goes through.
.

 

[Big Papa Ted]

nut wants the financial burden to be shared by all taxpayers rather than people with mortgages. I presume he has a mortgage and wants his burden to be shared by others, so it's a selfish thread.

Afaik I didn't support or contribute to policies that resulted in runaway inflation, so I feel no responsibility for it.

I'm sitting back enjoying the shitshow from the sidelines of the home I own. It's glorious.

Wouldn't the more appropriate way of looking at it be that Nut wants everyone in our society to share the burden equally? Rather than just those with a homeloan? That seems selfless rather than selfish.

What policies are you referring to that caused runaway inflation? And once you've explained them, can you outline how you think only those with a mortgage contributed to/supported them?

 

[evolved2]

Wouldn't the more appropriate way of looking at it be that Nut wants everyone in our society to share the burden equally? Rather than just those with a homeloan? That seems selfless rather than selfish.

Interest rates are a tool used by the RBA to control inflation, yes? Until people FOMO'd into buying property they couldn't afford, Australian society accepted interest rate changes as a reasonable response to economic conditions.

What changed?

What policies are you referring to that caused runaway inflation?

Extreme socialism, money printing, paying people to sit at home doing nothing.

And once you've explained them, can you outline how you think only those with a mortgage contributed to/supported them?

Nice strawman. I never made that claim.

 

[burge13]

nut wants the financial burden to be shared by all taxpayers rather than people with mortgages. I presume he has a mortgage and wants his burden to be shared by others, so it's a selfish thread.

It should be. I dont have an answer but why should only those with mortgages suffer the burden?

There has to be a better way than passing the buck onto 1/3 of people with a mortgage and the profits go into banks who dodge *loads of taxes

 

[Madas]

The forced savings model proposed whereby the workforce population is forced to increase their superannuation to combat inflation instead of making workers who can’t afford the rate hikes suffer and making the banks richer , intrigued me .
I’m sure there are pros and cons but hard to fault the logic .

The current system is so broken , archaic and corrupt

 

[evolved2]

It should be. I dont have an answer but why should only those with mortgages suffer the burden?

There has to be a better way than passing the buck onto 1/3 of people with a mortgage and the profits go into banks who dodge *loads of taxes

kranky al proposed the idea of increasing superannuation to control inflation. I can support that.

What do you think?

 

[burge13]

The irony of covid helicopter money causing inflation is the governments answer to that inflation is subsidies, extra welfare, raising dole etc. Constant talk of helping people through the crisis they caused with the exact same s**t that causes it. Never ends

 

[evolved2]

The irony of covid helicopter money causing inflation is the governments answer to that inflation is subsidies, extra welfare, raising dole etc. Constant talk of helping people through the crisis they caused with the exact same s**t that causes it. Never ends

The government ponzi needs public support to keep the scam running.

 

[burge13]

kranky al proposed the idea of increasing superannuation to control inflation. I can support that.

What do you think?

Interesting idea. I personally dgaf about super as by the time its available to me the retirement age will be 70+, or probably even more. Pointless worrying about tbh (im good with money, super wont be needed tbh)

That said, most would benefit from being forced to use it though. Financial literacy is non existent for the general public. I think a system where money is forced into super but available sooner than retirement would be a winner.

Then again that kind of thing is available to everyone via the stock market, ETFs etc and people dont do it...

 

[Crankyhawk]

nut wants the financial burden to be shared by all taxpayers rather than people with mortgages. I presume he has a mortgage and wants his burden to be shared by others, so it's a selfish thread.

Afaik I didn't support or contribute to policies that resulted in runaway inflation, so I feel no responsibility for it.

I'm sitting back enjoying the shitshow from the sidelines of the home I own. It's glorious.

well we did previously have a budget repair levy (that hit high income earners), though high income people probably aren't spending all they earn anyway so would have minimal effect on inflation (just reduces savings) - but at least junk the stupid stage 3 tax cuts.
increasing GST will disproportionately affect low income people (fixed expenses)

 

[Crankyhawk]

kranky al proposed the idea of increasing superannuation to control inflation. I can support that.

What do you think?

no because i think that for a high income earner it might cost me less to just pay it directly as tax (instead of it going to super which then is eaten immediately by excess contribution charges and I think a 93c in dollar tax rate)

 

[Big Papa Ted]

Interest rates are a tool used by the RBA to control inflation, yes? Until people FOMO'd into buying property they couldn't afford, Australian society accepted interest rate changes as a reasonable response to economic conditions.

What changed?

This seems to be the argument of "it's how we've always done it". But it could be because how prices relevant to annual income have never been so expensive?

Personally ive always thought of taxation as a better lever of counter-cyclical policy instead of interest rate rises, but unfortunately it's a lever that's rarely used due to the nature of politics.

Extreme socialism, money printing, paying people to sit at home doing nothing.

I'm not sure what policies you're referring to other than COVID payments? I'm pretty sure evidence has shown that inflation has been caused by supply shocks more than anything.

Nice strawman. I never made that claim.

Sorry you said:

"Afaik I didn't support or contribute to policies that resulted in runaway inflation, so I feel no responsibility for it."

While in the same post basically stating that it's selfish for mortgage holders to want others to bare the hurt of counter inflation policies. Apologies if I incorrectly drew that link.

 

[evolved2]

well we did previously have a budget repair levy (that hit high income earners), though high income people probably aren't spending all they earn anyway so would have minimal effect on inflation (just reduces savings) - but at least junk the stupid stage 3 tax cuts.
increasing GST will disproportionately affect low income people (fixed expenses)

I wont support breaking of an election promise. My opinion makes sfa difference though.

Personally, I think the dumb campaigners who paid overs should wear the costs for doing so. Keep raising those rates!

 

[Crankyhawk]

I wont support breaking of an election promise. My opinion makes sfa difference though.

Personally, I think the dumb campaigners who paid overs should wear the costs for doing so. Keep raising those rates!

True in that rates are really just returning to the normal and there could be a large property correction coming which in the long term helps housing affordability

 

[evolved2]

This seems to be the argument of "it's how we've always done it". But it could be because how prices relevant to annual income have never been so expensive?

Personally ive always thought of taxation as a better lever of counter-cyclical policy instead of interest rate rises, but unfortunately it's a lever that's rarely used due to the nature of politics.

Is that merely an opinion or an educated opinion?

I'm not sure what policies you're referring to other than COVID payments? I'm pretty sure evidence has shown that inflation has been caused by supply shocks more than anything.

I thought money printing during covid was common knowledge. Do you disagree?

Sorry you said:

"Afaik I didn't support or contribute to policies that resulted in runaway inflation, so I feel no responsibility for it."

While in the same post basically stating that it's selfish for mortgage holders to want others to bare the hurt of counter inflation policies. Apologies if I incorrectly drew that link.

Did I stutter?

 

[nut]

Why do you want sensible people like myself, who've lived by our means and paid off our homes, to be punished for being prudent?

Shouldn’t the government be prudent?