Labor opens door to $20b tax cut compromise

Looks like Federal Labor are the ones who are prepared to make the tough decisions to move the Australian economy forward as the LNP drag their feet.

Labor opens door to $20b tax cut compromise.

Labor would consider reversing its opposition to $20 billion of the Coalition's planned income tax cuts if the government agrees to bring them forward to July to stimulate the economy.The cuts, worth $2600 for workers earning up to $120,000 a year, were not scheduled to come into force until 2022, under the second stage of the Coalition's three-part tax plan.

"We would consider any proposal to get the economy moving again if it was responsible and if it was affordable and if it prioritises people who are more likely to spend in this floundering economy."Reserve Bank of Australia (RBA) governor Philip Lowe this week arguing more fiscal help was needed to stimulate an economy that grew by just 1.8 per cent in the year to March 31, after the central bank cut interest rates to a record low of 1.25 per cent,"If the Reserve Bank says that we need tax cuts to stimulate the economy, the tax cuts in stages two and three don't come into being for three and five years," Dr Chalmers said. "They have absolutely zero chance of stimulating the economy in 2019 or turning around this feeble growth."

Dr Chalmers said bringing forward infrastructure funding and restoring penalty rates would also boost spending and economic activity, while accusing the Coalition of "conning people that they are doing a good job managing the economy".The deputy chief of staff to former treasurer Wayne Swan said one of the features of Australia's response to the GFC was the way the RBA and government worked hand in hand."The difference now is we have a government that has vacated the field on growth and a Reserve Bank which has far less ammunition to get the place moving again," he said. "What people will see from Labor is a policy agenda that works hand in glove with the bank and not in contradiction of it."

https://www.brisbanetimes.com.au/politics/federal/labor-opens-door-to-20b-tax-cut-compromise-20190606-p51v4f.html