"Labour have handed out $900 cheques to buy Chinese LCD's to the lower income earners and spent the piggy bank."
Good point...let's put some flesh on this.
Under the one-off 12-month scheme, those on a taxable income of between $50,001 and $100,000 will pay a levy of 0.5 per cent. Those earning $100,000 or more will pay one per cent.
1% of $100,000 = $1000 .05% of $50,000 = $250
the government gives us $900 and takes it back If $900 was used to stimulate the economy what will taking the money back do? Probably, lower consumption and ultimately via the multiplier run it down. Insterestingly, people on $50,000 are still $650 ahead. But people on $100,000 and over are down $100. A lot probably didn't get the $900 But politically a good move -people on more than $100,000 probably don't vote Labor anyway.
