During one of the worst financial crises Australia has ever faced, The labor ruling class has issued a new set of tax cuts to the Australian people.
– Reduce the 19 per cent tax rate to 16 per cent (for incomes between $18,200 and $45,000).
– Reduce the 32.5 per cent tax rate to 30 per cent (for incomes between $45,000 and the new $135,000 threshold).
– Increase the threshold at which the 37 per cent tax rate applies from $120,000 to $135,000.
– Increase the threshold at which the 45 per cent tax rate applies from $180,000 to $190,000.
Now, any tax cut is a good tax cut, as it incentivizes growth and economic freedom among the people, however, this is still only a tax cut of mere singular units. To put it into perspective. 19 per cent is reduced by only 3. And 32.5 per cent is reduced by only 2.5.
This is miniscule and will do absolutely nothing in the grand scheme of things. All this whilst Australian private owned businesses are being bankrupted left right and center as more than 1 business goes bust every hour.
Extreme levels of migration are putting immense pressure on the housing market, forcing house prices to rise astronomically to the point where Australian born citizens are forced to sleep outside in tents in major cities because it is impossible for them to enter the housing market.
Unchecked inflation has sent the cost of materials and products through the roof, causing small businesses to shut down. Labor costs also are increasing as more migrants come in but less workers are being produced.
One of the solutions? Queensland has just announced they will be ending house price bidding, echoing Chinese communist policies of the last century. As price fixing ALWAYS leads to problems. Its not the bidding on houses that is the problem, it is the fact that demand is so high, but supply is so low. And 30 businesses a day going bust only makes this bad supply situation even worse.
One of the solutions according to the labor ruling class is to cut taxes by mere singular units. This is a fallacy and will do nothing because it does not address the central issues.
Here’s how to begin solving the crisis, although there is much, much more:
– Cut migration down to manageable levels, at least by 25% (demand ⬇️)
– End government involvement in the housing market. (supply ⬆️)
– Reduce welfare spending. (labor ⬆️)
– End government involvement in the labor market. (labor ⬆️)
– Begin privatizing anything and everything possible. (supply ⬆️)
– Begin taping shut the mouths of labor politicians so they can’t talk anymore. (sanity ⬆️)
Because every time the government gets involved in the economy, they ruin it. This has been tried hundreds if not thousands of times before. And I always remember the book I read, From Mao to Market, by Andrew H. Wedeman, when ever I see the labor government pretending to be Lenin and thinking they can control the economy.
No government on earth can change anything in the organic system called the economy without also breaking something else at the same time.
More involvement, more problems.
Less involvement, less problems.
It is the hubris of our socialist (and now as they begin showing their true colors) communist leaders that ends up damaging the economy, damaging the personal lives of individuals, and then damaging the futures of a whole generation of people.
A simple 3 per cent and 2.5 per cent tax cut won’t do anything until the real issues are solved.
As the fires of Rome rise, Nero reaches out with a smile and offers you some grapes.
Alex James.