'Basic' error in Labor's tax plan October 22, 2007 10:31am Article from: AAP Font size: + - Send this article: Print Email LABOR has made a basic error in its tax policy in which 45 per cent of taxpayers would be worse off, Treasurer Peter Costello says.
"When they (Labor) announced their own aspirational (tax) goal they made a fundamental error," Mr Costello said during a press conference with Prime Minister John Howard at Parliament House today.
"In order to meet the goal of having 45 per cent of taxpayers on a 15-cent threshold or less you have to keep lifting those thresholds ... and they made a basic error.
"They understood you had to keep lifting the low income tax offset because they adopted that but they made a fundamental and basic error in not lifting those other thresholds."
Mr Costello said the mistake would leave 45 per cent of taxpayers $600 a year worse off.
Mr Rudd had refused to fix his error by adjusting his tax thresholds, he said.
"He refused to admit the error and as a consequence 45 per cent of Australians will be worse off," he said.
"He went on to announce changes to the childcare rebate to draw attention away from his blunder."
Mr Rudd had copied 91.5 per cent of his tax policy from the Government, Mr Costello said.
"Australians should know Mr Rudd did not do the work, he does not understand the policy, he is too inexperienced to manage a tax policy," he said.
"When he copied 91.5 per cent he was OK but the moment he went outside it had made a fundamental error.
"If he gets into government he won't have us to copy. He will be all on his own and that means that Australians will be worse off."
