Kenneth Davidson says in The Age this morning that the tax cuts offered by John Howard only compensate for bracket creep – indexed to inflation the cuts deliver nothing to tax-payers. If that is so then the Labor Party and all the other critics of the cuts should endorse the tax cuts now. Otherwise they are effectively agreeing to real tax increases.
Hands up pollies for those in favour of real tax increases over the next three years.
The sensible implication of Davidson’s critique is that, if anything, the cuts should be deeper.