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Is Abbott planning a carbon tax and lifting the GST?

  1. scittyandcross

    4,493 Posts.
    1
    Tonys talking about trying to emulate New Zealand by following their fiscal strategy. Clearly doesn't know what that was about.

    "If you look at what New Zealand did with fiscal consolidation, they had a very tight clamp on new spending," Mr Abbott said on Monday.

    "They didn't engage in big cuts. They had a tight clamp on new spending and New Zealand has got government, as a percentage of GDP, from 35 per cent to 30 per cent - a very big change in just a few years," he said."

    But the chief economist of HSBC Australia and New Zealand, Paul Bloxham, says New Zealand's economy has performed exceptionally well recently, and its government has helped the economy get those results by cutting spending and raising taxes - including introducing a carbon price and lifting the GST rate to 15 per cent."

    See Tony - there's the answer - if you cut the revenue and keep the spending the debt increases - by 30% in 18 months

    "The New Zealand government has managed to claw back some of its spending, but it is not just a spending-side story, it's a revenue-side story too. If the [Abbott] government wants to take a leaf out of New Zealand's book they will need to look at tax reform as well."

    Economics 101 - how economically illiterate is this bloke

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