80 bil budget blow out!, page-17

Profess, with respect my thoughts are different.
Given fact.
A government has to levy Tax to do what Governments need to do.
It is responsible for Public Health, Education, Social welfare etc.
The vast majority of tax collection comes from Company, Personal, and GST. Company and personal taxes are proportional. GST was introduced notionally to fund the States and Territories and eliminate a host of inefficient indirect taxes.
The total tax take has increased by about 40% over the last 4-5 years. Yet we now have continuing Government deficits. And getting worse.
I suggest this Government has a spending problem.
They complain their tax take is down. It is not down in total $ raised.
It is down on what they expected or hoped!
Take the Carbon and mining taxes.
I have a friend in a small business. His gas and electricity costs have increased by about $100k from last year. That is coming off his profit. The net result there is no company tax to pay because his profit went out the door in carbon taxes.For the government to expect the same profitabilty from business this year with this imposition, they are away with the fairies.
Australia as a nation is competing against the rest of the world when it comes to producing goods and services for domestic and international consumption.By increasing our cost of production by taxing gas and electricity, this government is killing business,jobs and the economy.
If business cannot get an economic return on its capital it either closes or transfers its production overseas.
Net result,lost jobs.
You mention the spending in the GFC.
Largley it was wasted. Little economic benefit was achieved.
If it had been spent on infrastructure like improved roads, rail and ports, benefits to the economy would be enormous and ongoing. How many man hours are wasted each day in peak hour traffic?
I read the other day the Department of Climate Change is moving about 500 public servants into new premises in Canberra. What economic benefit is that to Australia?
With the slowing of the mining industry, government needs to be supporting the rest of the business community to keep our economy ticking over.
With the increased tax take and wastage in spending it is failing on both sides of the balance sheet.
Greece had 27% debt to GDP once.
Australia is now trending the same as Greece.
Cheers,
Mickph