Listening to the Treasurer and others, you may get the impression that a blowout in spending has caused a structural deficit. This does not accord with the analysis of the independent Parliamentary Budget Office.
Articles from We are all dead.
I have a new comment piece in Guardian Australia. I argue that the large personal income tax cuts of the mid-2000s were a big factor in creating the structural deficit, and that any attempt to wind back this deficit should start with those tax cuts. At the very least, bracket creep should be allowed to do its thing. Please read it!
After reaching an all-time high of 65.8% in November 2010, the proportion of people aged 15+ who are either in work or actively looking for work has declined sharply, hitting 64.8% in October this year. An important question for policy makers is this: is the participation rate declining because people are being discouraged from looking for work, or is it declining as a natural consequence of the ageing of the population?
My previous post summarised the findings of a recent paper published in Agenda about the extent to which the Australian welfare state is biased towards older households. Peter Whiteford from ANU left an important comment:
There are two alternative proposals to increase the tax on superannuation contributions.
- The first proposal would raise the tax on superannuation contributions paid by the 128 000 highest-income Australians by 15 percentage points.
- The second would increase the tax on super contributions paid by the 3.6 million lowest-paid workers by 15 percentage points.
Which of these proposals would you describe as ‘class war’?