Category Archives: Economics

Budget 2014: setting up for more tax cuts for the rich, funded by grinding the poor into the dust

How to give a certain class of Australians what they want.

Tony Abbott at Daily Tele post-budget party

Tony Abbott at tonight’s Daily Telegraph post-budget party

  • Step 1: Win government, promising that, even though the country’s finances are well-known, you can magically create a “budget surplus” whilst simultaneously cutting taxes, and not cutting spending.
  • Step 2: Exaggerate budgetary difficulties. Double the deficit. Lock in revenue cuts (eg abolishing the mining tax) that help your rich mates. Lock in company tax cuts.
  • Step 3: Claim “budget emergency” (even though anyone paying attention can see that the only things that have changed since the election were done by you)
  • Step 4: Slash basic services for the poor – drive those on NewStart further into poverty, deny young people even that support, bully the poor out of going to the doctor or even the emergency room, cut services for the disabled.
  • Step 5: Cover your permanent assault on the poor with a comparatively small “deficit levy” on certain wealthy people that is, unlike the service cuts, only temporary.
  • Step 6: As soon as the unnecessary cuts produce a surplus, give the proceeds to the rich in more tax cuts.

In short –
Times are good: lock in tax cuts.
Tax cuts wreck the budget: lock in service cuts.
Service cuts create a surplus: more tax cuts.

End result: America.

Still, after all, it’s just what Australians want – which is why before the election we had to tell them none of it would happen. Because of how much they support it.

Oh, alright, yes, they’re angry – now, two and a half years out from the next election, when they can’t do anything about it. Sure, we’ve got a lot of votes to buy back in the next two budgets – but with the money we just gouged out of the poor and vulnerable, history indicates we can do it.

Trust us.