longweekend58 wrote on Jan 3
rd, 2015 at 9:42am:
Bam wrote on Jan 3
rd, 2015 at 9:31am:
I've been saying for a while now that Costello's biggest mistake as Treasurer was funding permanent budget measures out of temporary revenue. Costello had better options, some examples:
* invest in infrastructure, perhaps by creating an infrastructure fund
* put the proceeds into the Future Fund
* buy back outstanding government bonds
These are examples of temporary expenditure that offer a benefit to the country and where spending can be stopped without causing political pain.
Costello did none of these things. Instead, he cut taxes and ramped up middle class welfare. The massive expansion of middle class welfare under the Howard government was their worst legacy, and it's going to take some years to unravel this waste. Cutting taxes was also a poor decision.
this is a trick question.
Are you in favour of automatic tax indexation?
You know what I am leading to so it will be interesting to see what you reply with - if you reply at all.
Not relevant to my point.
Costello's middle class welfare was a waste of money that was mostly spent in election years to buy votes.
The tax cuts that Costello made overwhelmingly benefited the wealthy, with token measures at best for people on more modest incomes.
That is the Liberal party way - when tax cuts are handed out, it's tokenism for low incomes (sandwich and a milkshake, not even enough to counter years of bracket creep), and massive largesse for the rich; when budget tightening is necessary, it's savage attacks on the poor and token measures for the rich. Don't even try to deny it, it's true.