Tax cuts. Tax cuts. Tax cuts. The goto strategy for a government that can't govern. The quick fix which fixes nothing, in fact makes everything worse.
Tax cuts are always regressive and favour the rich. For this tax cut, the bottom 40% of wage earners get just 2% of the benefits.
Tax cuts is like getting a pay-raise at work. For the 1st month after a raise, you think the company is the greatest thing on the planet, and you come in early/leave late, then the raise becomes normal and life becomes exactly the same as it was and your hatred of the company and your job returns.
Tax cuts are done so you can consume more. Simple as that. You might upgrade your phone, or replace that 10yo microwave but life becomes the same. What isn't the same is that $184 Billion is removed from the government's coffers, and this is where life becomes worse for all of us other than the rich. You need new medical facilities in your area? Sorry, it's not in the budget. Your kid needs additional NDIS funding for further treatments. Sorry, we can't afford it. Your school teacher/student ratio has increased to 30-to-1 and needs new computers. Sorry, no new funds for education.
What we all want, and what we need in society to increase our overall well-being is a government that has the resources to supply the aggregate services that we need. And the rich, who will get the bulk of these tax-cuts, don't really care about aggregation because they can afford private schools, and pay for any required services they need anyway. So the person who gets a whopping $15 per week tax-cut suffers, and since this is the bulk of the people in society we all suffer.
The government, and any government that cuts taxes, have it all ass-backwards. Society prospers when the tax-rates for profitable companies and rich people is high. Then the divide between the rich and the poor is lower, the middle class has access to the necessary government services, and resources such as medical care, education, disability services can be fully funded.
No comments:
Post a Comment