ABC’s 7.30 Report aired a debate last night between Liberal Treasurer, Scott Morrison, and Labor Shadow Treasurer, Chris Bowen (video above).
Scott Morrison played-up the Government’s Budget management, claiming that it has “not spent more than we have saved and we have not raised taxes on the Australian people”, in contrast to the opposition.
By contrast, Bowen argues that Labor’s Budget agenda is focused on fairness, tackling measures such as reforming negative gearing, capital gains tax concessions and high-income superannuation.
Scott Morrison also argues that the Coalition is about “jobs and growth”, whereas Labor’s is about “higher taxes and deficits”. By contrast, Chris Bowen argues that Labor is about “investing in our human resources, in our people, in our greatest asset, to grow our economy now and in the future”. Bowen also claims that the Coalition’s plan for growth – the company tax cut – will not deliver a growth dividend.
For mine, the key exchange in the debate was the following, which neatly highlights the differences between the two parties:
CHRIS BOWEN: Well, Leigh, as I was saying, it [the Budget] will show return to balance the same year. The fact of the matter is: deficits will be higher than the Treasurer is forecasting. And importantly, our return to budget balance is accompanied by very serious structural reforms to the budget, which grow over time…
SCOTT MORRISON: Which means higher taxes.
CHRIS BOWEN: …which grow over time and then return to the budget exactly the sort of strong structural reform necessary, which this Treasurer has lacked the courage or authority to implement. Well, I have: and we will implement things that have been in the “too hard” basket for 30 years, like reforms to negative gearing, reforms to capital gains tax, which are exactly what the budget needs.
SCOTT MORRISON: All of these things, though, Leigh, are just higher taxes…
What Chris is proposing is a higher level of tax burden on the Australian economy and he’s imposing a higher level of spending, which outstrips the taxes that he’s putting on the economy, which means higher deficits.
So everything Labor is doing with their proposals is to put more stress on the economy. Everything we’re seeking to do is to reduce the burden of spending on the economy and to ensure that taxes are lower and that deficits will be lower than what Labor is proposing. Now, that is a sensible way forward. It’s a stable way forward…
CHRIS BOWEN: This election is about choices, Leigh. This election is about choices. We choose investment in schools. We make no apologies for that. Investment in schools is a very important part of our economic future. It’s important as a matter of fairness, but it’s an important investment.
The Treasurer chooses a $50 billion corporate tax cut. We have different priorities. I say: you can’t afford both. You can’t afford to invest in schools and have a corporate tax cut. We invest in schools.
So basically, the Coalition believes in “trickle-down” economics, whereas Labor believes that the best way to boost growth is to invest in public education, health, etc.
