Monday, January 29, 2024

TAX CUTS AND INFLATION ARE NOT A GOOD MIX

Promises of tax cuts in an era of hyperinflation are bound to be futile and not worth a pinch, for all income categories. 


It doesn't matter if an Australian worker is earning $20000 or $200000 dollars, fact is that any tax cut they receive is going to be eaten up at the cash register, every time they go shopping. 


As it stands, high income earners, typically those earning in excess of $100000 a year, are the ones being penalized for being successful, for working hard and long hours, and for having something which the Albanese government seems to be attempting to quell - ambition. 


The promised tax cuts which Albanese and treasurer Jim Chalmers have renegged on, were not worth the paper that they were written on. For one very logical reason - cost of living. 


Until the Albanese government takes whatever radical action is needed to rein in inflation to end the cost of living crisis, including possibly even revaluing the Australian dollar, then tax cuts of any kind which are aimed at any income category is a defeated purpose before it even begins. 


Right now, tax cuts is as flawed of a fiscal monetary policy as printing money.

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