Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Abbott breaches trust on budget

By Tristan Ewins - posted Friday, 9 May 2014


Abbott has broken faith with the Australian people. And unlike with Julia Gillard, he has broken that faith without the Greens 'holding him over a barrel' lest he lose Government. Just as Gillard was hounded until the very end on her carbon tax promise – Labor needs to ensure Abbott – and the Australian people – never forget these broken promises.

The Government's plans to raise taxation slightly for the wealthy while 'coming down like a ton of bricks' against welfare recipients is also offensive. (his move to exempt upper middle class taxpayers also discredits any pretension of 'spreading the burden'; for our purposes we will define that asincluding those on $100,000/year to $150,000/year)

Oscar Wilde once said: "To recommend thrift to the poor is both grotesque and insulting. It is like advising a man who is starving to eat less."

Advertisement

He could just as well have been speaking to Abbott, Hockey or Cormann.

A wealthy taxpayer might barely notice a marginal increase in tax. But for the poor and vulnerable the impact of welfare austerity would be crushing.

But Shorten's response to the Government's plans is also very disappointing.

He has been quoted as arguing:

"Increasing taxes on working class and middle class Australians is a terrible mistake and people will not forgive Mr Abbott for breaking this very big promise to increase taxes."

Again: Abbott must be held accountable for the breach of trust.

Advertisement

Yet Shorten's apparent opposition to any increase of tax on the middle class is also deeply concerning. Yes, removing superannuation concessions from the most wealthy could save over $15 billion. But a more ambitious program of welfare, infrastructure and social wage expansion would necessitate a broader base. And over the longer term even 'treading water' on welfare and social wage provision would require a proportionate increase in tax. The 'good news', however, is that tax increases on the middle class don't have to be too severe – because of that broader base.

Labor should never have abandoned its support for a retirement age of 65. Arguably for retirees there are 'quality of life' issues that go beyond the drive to extract more revenue and press ever-growing consumption. Under these circumstances the middle class would have to shoulder partof the responsibility for making Australia a truly 'Good Society'. If Shorten does not take account of this the Greens most likely will. And Labor will progressively 'lose ground' to the Greens 'on their left flank'; while floundering in its attempts to inspire a rush in membership levels and activity.

All said, though, it is the austerity rather than the tax measures which are the most concerning aspect of the Conservative agenda in Australia. 'Distributively fair' tax measures on their own could provide a 'silver lining'. Some debt is arguably necessary to spread the cost of infrastructure over generations. But cutting debt servicing costs in half could be workable, and arguably see all that money saved (approx. $4.5 billion) redirected every year toward the most vulnerable and needy. For instance: for those in need of Aged Care.

With Hockey's priorities, reduced debt servicing costs would likely be passed onto corporations, the wealthy and the upper middle class rather than the poor and vulnerable. But if there are those in the Government who would rather aspire towards 'Catholic social welfare Centrism' – then this would be a crucial issue on which to take an uncompromising stand. (both on social welfare; and in opposition to US-style exploitation of the working poor)

The same principle should apply to others in the Government identifying as 'compassionate Christians' as well.

  1. Pages:
  2. 1
  3. 2
  4. Page 3
  5. All


Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

17 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Tristan Ewins has a PhD and is a freelance writer, qualified teacher and social commentator based in Melbourne, Australia. He is also a long-time member of the Socialist Left of the Australian Labor Party (ALP). He blogs at Left Focus, ALP Socialist Left Forum and the Movement for a Democratic Mixed Economy.
.

Other articles by this Author

All articles by Tristan Ewins

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Photo of Tristan Ewins
Article Tools
Comment 17 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy