""All I know is that my and your children will be paying for the waste and self indulgence by the labour party for years to come.Before the GFC we had a surplus $35B we now
have a deficit of $45B ,that to me means $80 BILLION down
the tube! Tell me how much of that was WASTED?"
Did i hear somewhere that tax reciepts are down 100 billion since the start of the GFC?"
Well head2641 to answer you question please read below
http://www.lateraleconomics.com.au/outputs/Waste%20Media%20Release.pdf
Media Statement: 1.00 pm Wednesday 18th August
Tax from more jobs lowers debt by $16 billion
A Lateral Economics study released today shows that over a quarter of the debt
from the fiscal stimulus will be repaid from the taxes of those who would
otherwise have been unemployed.
As our economy turned down in late 2008, Australians spending kept other
Australians in work. And those kept in work repaid the favour by continuing to
pay their taxes. said Nicholas Gruen, CEO of Lateral Economics.
So for every dollar the government spent, tax revenue to Australias
governments rose by around 22.5 cents, leaving just 77.5 cents to be repaid.
The total windfall to the budget and to the community of the additional tax
revenue from the cash transfers is around $6.7 billion. This money and the
production of all those people and all that capital kept in employment are the
riches of good economic management the only kind of free lunch we know of.
Results were even better for the infrastructure spending. Where some of the
cash payments were saved, all of the infrastructure spending went straight into
the Australian economy. And with larger multipliers than consumer spending,
every $1 of government infrastructure spending increased output by $1.20
generating 36 cents of government revenue.
So for each dollar of stimulus the Government spent on infrastructure, the debt
incurred was only around 64 cents. Thus of the $26.5 billion dollars of
infrastructure budgeted to be funded in the years 2008-9 and 2009-10 Australian
taxpayers will need to service and/or repay only around $16.9 billion of debt via
state and federal taxes.
?Of course, being rushed, there were inefficiencies in building the infrastructure.
The recent Interim Report of the Orgill Taskforce estimated those inefficiencies
at around 5 to 6 cents per dollar spent. Those inefficiencies cost around $1.5
billion compared with the tax windfall of $9.5 billion from tax collected from who
would not otherwise have been employed. The net result leaves Australians
better off by around $8 billion.
?Counting the effects of both the cash transfers and the infrastructure spending
to the financial year just ending, tax revenue increased by $16.2 billion from
additional employment. These economic benefits are in addition to any social
benefits including improved physical and psychological health from lower
unemployment. Dr Gruen said.
Inquiries and further comment
Nicholas Gruen 03 9646 0553, 0403 077 732
http://www.lateraleconomics.com.au/outputs.html
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