“The proposed income tax cuts in the 2018 Budget are too timid and too slow. Tax cuts for all Australians should be delivered right now, not on the never-never,” said Daniel Wild, Research Fellow at the free market think tank the Institute of Public Affairs.
Under the 2018-19 Budget released today, debt is expected to reach a record $561 billion, taxes a record $473 billion, and spending a record $484 billion.
“The so-called ‘tax speed limit’ is a smokescreen to hide the fact that this is the highest taxing, highest spending, and highest debt Budget in Australia’s history.
“The true cause of higher taxes is higher spending. Every dollar in extra spending must be paid for with higher taxes, either now or in the future.
“The only way to deliver permanent tax cuts is to implement permanent spending cuts.
“They are repeating the mistake they made with the business tax cut by not cutting the top personal income tax rate until 2024.
“Even on the government’s own projections, the entire expected reduction to the Budget deficit is achieved through higher taxes.
“The governments ‘fiscal strategy’ is really just a tax and debt strategy where excessive spending is being passed onto young Australians through higher future taxes.
“A radical reduction to the size and scope of government intervention is needed so that Australians can flourish and reach their potential,” said Mr Wild.