Opinion: The 2024 tax cut, supported by both the federal government and Labor, is now “unfunded” and economically irresponsible. We’ll be borrowing money to give ourselves a tax cut | Economics editor 1rossgittins
extensive stress-testing by the independent Parliamentary Budget Office has confirmed that the present and prospective public debt is sustainable.
But here’s my point. There’s a simple and obvious way both sides could, with one stroke, significantly improve prospective budget balances, and because it would be front-end loaded, disproportionately reduce our prospective public debt over years and decades to come. It was said at the time that it was reckless for the government to commit itself to such an expensive measure so far ahead of time. It was holding the budget a hostage to fortune.
But the tax cut both sides support is now also “unfunded”. We’ll be borrowing money to give ourselves a tax cut. That’s economically responsible?
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