if you're a rusted-on supporter of coalition

Sad part is we will probably have Abbott and Costello running our Economy down yet again ,as im sure imo Costello will be hired to do a review as he just did in Qld ,no change from Costello from memory ,sell the farm yet again.

And Costello gets on 7.30 with that smug look on his face ,that imo he shares with Andrew Bolt and tries to convince us he is an Economic genius.




http://www.smh.com.au/business/cutting-tax-comes-back-to-bite-years-down-the-line-20130503-2iyd7.html


Cutting tax comes back to bite years down the line.

The Australia Institute has used the well-regarded Stinmod micro-simulation model to estimate that, had the income-tax scale for 2004-05 still been in use last financial year, 2011-12, collections from the tax would have been almost $39 billion higher.





If you're a rusted-on supporter of the Coalition there can't be a shadow of a doubt that all the budget problems we're hearing about are the product of the Gillard government's incompetence. And if you don't think much about economics it's perfectly believable.

Not only did John Howard allow government spending to grow at Labor-like rates in the noughties, but Costello responded to the temporary boost in collections from company tax by cutting income tax eight years in a row (though, to be sure, the last three of his cuts were actually delivered by Labor).

Does it surprise you that cutting income tax so much can reduce its revenue-raising power today and in coming years? It shouldn't.