perceptions_now
Gold Member
![*](http://www.ozpolitic.com/yabbfiles/Templates/Forum/default/stargold.gif) ![*](http://www.ozpolitic.com/yabbfiles/Templates/Forum/default/stargold.gif) ![*](http://www.ozpolitic.com/yabbfiles/Templates/Forum/default/stargold.gif) ![*](http://www.ozpolitic.com/yabbfiles/Templates/Forum/default/stargold.gif)
Offline
![](http://static.seekingalpha.com/images/users_profile/000/289/932/big_pic.png)
Australian Politics
Posts: 11694
Perth WA
Gender:
|
John S wrote on Feb 22 nd, 2014 at 4:01pm: bogarde73 wrote on Feb 22 nd, 2014 at 1:25pm: Or this:
Australia will run out of money to pay for Medicare and its welfare and education systems unless the Abbott government takes a harder look at costs, says Treasurer Joe Hockey.
Mr Hockey said he was ''ringing an early warning bell'' about the sustainability of federal funding for vital programs, saying hard work will be needed in the future just to maintain the quality of life expected by most Australians.
''The starting point is if our health and welfare and education systems stay exactly the same, Australia is going to run out of money to pay for them,'' Mr Hockey told the Seven Network on Friday.
''If nothing happens, we will never get back into surplus, we'll never pay off debt.
''We'll either have to have a massive increase in taxes, and that means fewer jobs at the end of the day, or we're going to have to look at ways we can restructure the system to make it sustainable.''
Mr Hockey said that Medicare was forecast to increase from $65 billion in this year's budget to $75 billion within just three years.
Can anyone tell me how is it by increase taxes it will cost jobs.
You can increase personal income tax, GST, CGT or the medicare levy. How would any of them cost jobs or is Hockey talking out of his arse again. Well Yes, If an increase in Taxes makes Australia internationally uncompetitive, then Business, particularly Big Global companies could pick up & move offshore.
However, given that almost all countries have similar problems, then they will all be looking at a similar, small number of options & high on those options are increasing Taxes & lowering Expenditure.
So, the most likely outcomes would suggest small Tax increases, closing Tax loopholes & lopping off some Expenditure.
Therefore, if most countries adopt that strategy, then OZ would be Tax steady & thus business would stay put!
Oh & btw, we could take relatively small Tax increases & relatively small Declines in Expenditure and make some very good inroads into our debt, thus getting down to manageable levels, unless the bottom falls completely out of the Global Economy, then all bets are off!
|