Australian Taxpayers Alliance (ATA) director, John Humphreys, claims the cost of the Turnbull Government’s income tax cut package has been grossly overstated and that the package will only cost about $78 billion over 10 years, compared with Treasury’s forecast of $144 billion. In particular, the Government estimates that the third stage of the tax package affecting high income earners will cost $41.6 billion, but Humphreys claims that it will cost just $3.5 billion because more people are likely to enter the workforce or increase the number of hours they work as a result of the tax cuts. From The Australian:
The cost of the government’s planned income tax cuts has been significantly overstated because the Treasury has assumed they won’t drive behavioural change among taxpayers, according to analysis that would slash by half the real cost of the Coalition’s seven-year tax plan.
