It is all but certain that Labor will proceed with the Liberal Partys Stage 3 tax cuts. The cuts, which take effect in July 2024, are an enormous handout to the rich, and are forecast to cost $313 billion over ten years. Of that amount, around two-thirds will go to people earning more than $150,000 per year. The lowest 60 percent of income earners will receive just $25.2 billion over the decade. <\/p>\n
As Greg Jericho, chief economist at the Australia Institute, writes, Almost half of the total benefits go to the richest 3% and so massive are the costs at $300bn over 9 years, that you could raise Jobseeker from its current rate of $693 a fortnight to $1,925 and you would still end up with a smaller government deficit in 2032-33 than you would with the Stage 3 tax cuts. <\/p>\n
Despite this, and the cost-of-living crisis facing millions of people, the Stage 3 tax cuts did not even rate a mention at the Labor Partys recent national conference, where the so-called left of the party held a majority of delegates. Along with backing in the $368 billion spend for nuclear submarines as part of the AUKUS pact, the conference made clear the priorities of the ALP. <\/p>\n
Labors pledge to guarantee just $500 million per year to stimulate new housing as part of its Housing Affordability Future Fund, for example, comes to a price tag of only 1.6 percent of what the Stage 3 tax cuts will cost. On top of this, we could add the $24.4 billion the government spent last year alone on negative gearing tax concessions, and the $23.7 billion in capital gains tax discounts, much of which ends up in the pockets of wealthy property investors. <\/p>\n
The scrapping of the low-middle income tax offset, which was worth up to $1,500 for people earning up to $90,000, means that workers on average wages and below will actually be paying more tax in the coming years. Someone on the current median income of $65,000 will pay $1,000 more in tax in 2024-25. So, while the richest, including CEOs, politicians and surgeons, will receive an extra $9,075 per year, many nurses, teachers, secretaries, aged-care and hospitality workers (and most others) will be paying more. <\/p>\n
All this comes in the context of wage rises that are far below inflation, and soaring prices for basic necessities. At a time when workers living standards are sliding backwards, the Labor government is taking money from their pockets to give to the rich. <\/p>\n<\/p>\n
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Albanese persists with reverse Robin Hood policies - Red Flag<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" It is all but certain that Labor will proceed with the Liberal Partys Stage 3 tax cuts. The cuts, which take effect in July 2024, are an enormous handout to the rich, and are forecast to cost $313 billion over ten years. Of that amount, around two-thirds will go to people earning more than $150,000 per year Continue reading