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2010-08-11

Fallacy of structural budget deficit argument

Comments on George Megalogenis “Rivals run the other way to avoid gaping hole”, 11/08/2010, http://www.theaustralian.com.au/national-affairs/commentary/rivals-run-the-other-way-to-avoid-gaping-hole/story-e6frgd0x-1225903707457
George, while you have been arguing for the problem of structural budget deficit for a while in line with what some of Treasury official have said, why you don't include the potential effects of bracket creeping of personal income tax over time on the structure of budget balance, assuming the tax rates are fixed?

It is very hard to understand why you and some other people like those in Treasury could conveniently forgot that obvious fact.

Is that possibly due to what Treasury head said what he learnt from secondary economics?

The argument of structural deficit brought by the previous government is a joke and laughable.

It lacks common sense, not to mention elementary economics.

It is myopic and extremely short sighted.

It is also likely to be partisan and ideologically driven to have big government and big spending, as opposed to let workers keep their own earnings and money.

That is appalling.

PS: in retrospect, the former coalition government’s tax cuts had another unexpected dividend, that is, left smaller room for the current ALP government to squander and waste. Money in people’s own hands is much better than in the pollies’ purses.

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