We are in deficits because of the Howard Tax cuts which Labor matched at the 2007 election to elminate the cuts as a point of difference, and instead argue on other things.
Those tax cuts have caused long term structural problems in the budget.
Both Labor and Liberal should not have suggested/implemented the Tax Cuts. But they both did.
Things are different this time round. Labor and Liberal have very different Tax policies.
We see similar long term problems with energy.
Years ago the assets were sold for a quick sugar hit to the state budgets and assist with election promises. Years later we have massive problems that are politically too hard to fix.
So wheres the money you ask? It is in the pockets of Australian's being spent on over priced houses and shiney new iPhones.
From the link below which is a report on Tax and Budgets written in 2013. The report also talks about the influence of China on Australia.
From the 2013 report.
"The government would have had an additional $38 billion for last year’s federal government budget and would have collected an extra $169 billion over the past seven years had it not been for unsustainable income tax cuts that were made in the lead up to the GFC. Had the income tax cuts not been made, the current budget would not be in deficit and we would be having a very different discussion about funding priorities."
