Sections of Australia’s media have launched an all out attack on the passing of the Coalition’s income tax package by the Senate.
The Monthly claims the tax cuts commits Australia to austerity and will worsen inequality:
On the face of it, spending $158 billion over the next 10 years – which is what the Coalition successfully convinced parliament to do yesterday – would have a stimulatory effect. But that ceases to be the case if the government’s budget remains in surplus (which is the government’s aim). Because to achieve surpluses the government will need to take spending cuts in other areas – infrastructure or services – to make up for the lost billions in revenue. Scott Morrison claims his government won’t be doing that, but it’s simply not possible to (1) spend $158 billion, (2) remain in surplus, and (3) avoid cuts to other government spending…
