Both parties on the road to fiscal crisis

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A nice story today at the AFR:

Labor is unashamedly defending its plans to permanently expand the size of government with a 10-year budget plan that embeds a record tax take to fund a surge in spending that began during the boom years.

However, analysis by The Australian Financial Review of the tax and spending projections of both sides of politics indicates the Coalition is almost certain to match Labor’s spending levels unless it ramps up cuts or succumbs to the draw of higher taxes.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.