Phon swings to liberals on tax-top end counting $$

Originally posted by Scarpa ↑

I agree with Stage 1 and 2 of the tax cuts, not stage 3. Issue is timeline in stage 2 of increasing the income tax bracket from $90,000 to $120,000 been 2022. They should of given up on stage 3, been further increasing that tax bracket to $200,000 under stage 3 and gone for earlier introduction, say 2020, for stage 2. Those over $120,000 still benefit but 2022 is a long way down the track, but now legislated either they will be brought forward earlier by ALP or scrapped but now the BS can't hide. Wouldn't be surprised if part of election campaign the cuts are brought forward by the LNP as well as part of an election promise. Looks like the DDD words can be confined to the dust bin of history until a future government is forced to address the issue (like the Greeks). Anyway personal tax cuts do more for the economy than giving tax cuts to multinationals.

BS opposes stage 2 so is an embarrassment in himself given the average wage is $80,000 per year so killing his own middle class who face burgeoning costs of living and losing more of their income on housing (given the house to income ratio has increased massively over the last 40 years, from about 3 times to 10 times in some cities). So let's see what BS offers, but now there will be winners and losers depending on the BS plan which voters will now realise hence why I suspect the ALP is annoyed.

Finally not sure about all those tears PH did on TV the other day given she in effect supports the views of that senator quitting the party.

As I said BS is going to have to do something about the middle class now since it is in law - they will now be better able to see whether BS offers them something that will make them better off or worse of under his tax policy when released.

All IMO

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Hi Scarpa I suspect Shorten/Bowen may be saving their pitch for the middle class for the main election campaign.

They may reduce the tax rate even more than the libs for those described as middle class or middle income earners.

Labor can still claim that everyone actually gets a tax cut because everyone benefits from any reduction in the rates at the lower end of the tax scales. What it does though is ensure that the top end don’t get a huge dollar amount more than those on lower wages.The govt structuring is skewed so that the greatest benefit possible goes to the top end including Senators on $200,000 plus pa ($7000 cut) . That buys a lot more coffees than the $10 a week that the govt offers most Australians. Aspiration is great but most wont make it to the top end thats a reality particularly in such a competitive world where business is ever trying to cut costs and constrain wages growth.

cheers