Tax cuts to be brought forward?

https://www.smh.com.au/politics/fed...st-banks-urge-government-20191106-p537w4.html

I wish!

I'm contributing extra to my super and claim the deduction to the last dollar.

It will give me the maximum benefit of this deduction in case the tax cuts are brought forward!

 

Ummmmmm that article was published back in Nov 2019 mate..............

 

Here you go:

Call to hasten tax cuts as nation faces years of low rates

www.smh.com.au/politics/federal/call-to-hasten-tax-cuts-as-nation-faces-years-of-low-rates-20200622-p55500.html

Published 22 June 2020 at 7.45 pm

 

Rub my grubby hands together.
Pretty please!

 

fingers crossed:

https://www.smh.com.au/politics/fed...economy-out-of-recession-20200708-p55a70.html

from today's paper

 

And here I was thinking back in March....good bye future tax cuts! I was getting ready for another temporary budget repair levy.

I fully expect that will still be the case longer term but any relief in the short term is a bonus.

 

Here you go...wait for the budget!

 

Correct me if I'm wrong, but isn't this a supply-oriented response to a demand-driven problem?

 

There was a demand problem even before COVID hit, but why let reality stand in the way of ideology. Superior economic managers.

 

Essentially I'm confused about how income tax cuts will address a demand problem driven by mass unemployment. Shouldn't the government invest that money in infrastructure and emerging industries to stimulate demand?

 

Whenever I hear economists talking about needing to "boost demand" (Keynesian economists usually), I always have to chuckle.

It always reminds me a a quip that Peter Schiff says, which is something like, "As anyone who has been shopping with my wife can tell you, there is never ever a shortage of desire or demand. There are only ever shortages of supply".

I agree with Peter Schiff. We don't need to boost demand - demand is nearly infinite. We need to remove the restrictions on people being productive. This is where wealth comes from.

I welcome the tax cuts though, but it is upside down thinking from Mr Evans, sadly all too common in our current economic conversation.

 

BTW inflation is a tax. And there is loads of inflation.....

 

At a stroke, that would remove half the agents and RE people on this forum

 

On one hand Frydenberg is talking about the huge financial debt Australia is accruing and its impact for many years to come and then on the other, offering the prospect of tax cuts. I'm listening to mixed messages from the Govt.

Are 'across the board' tax cuts really what is required at this time or can the money be better used elsewhere?

 

Money always get spent, it just depends on when, and by whom. Private sector spending is always more rational because it is based on economic not political considerations. The private sector also saves, which is necessary in a free market system. So tax cuts are almost always the right thing to do because it pushes that decision making to the private sector.

 

Informative Government ad outlining how their economic plan wIll work for you:

 

It gets spent, but if it's on a Japanese car, Chinese TV, sub-continent clothing etc, my annual cruise with a foreign-owned cruise company, we've put ourselves into debt for the betterment of the world economy. Very noble but not very sensible.

 

... and the betterment of that consumer, who presumably knows best. Right?

Also sends an economic signal to the competitors to offer a different product or price.