Coalition’s high income tax cuts must be axed

With the second and third stages of the Morrison Government’s income tax cut package legislated to take effect in 2022 and 2024 respectively, there are now big question marks over whether they can be delivered.

For now, the federal government remains committed, with Treasurer Josh Frydenberg claiming that balancing the Budget means Australia is in a “strong position” to deal with the pandemic, adding that the Coalition is of the view that lower taxes strengthen rather than weaken the economy:

Based on the coronavirus emergency measures and its economic impact, leading economists forecast a blowout in federal government debt over the next 18 months by as much as $400 billion, to more than $1 trillion, with the federal deficit to reach as much as $200 billion…