I have a lot of respect for #SaulEslake as one of the 'heavyweight' economists in Australia. Not just because he 'knows' what #Productivity is really about, unlike most business pundits and economy journalism, but because everything he says is considered and grounded in decades of economic observations.
But even Paul appears smitten with the #Neoliberailsm which infests contemporary economic thinking:
"Given current projections showing budget deficits as far as the eye can see, both federally and in the state, this almost inevitably means raising more revenue than the taxation system as currently structured seems capable of doing. "
IMO the failure of economists (including, it seems, Eslake) to recognise that govt are not required to keep a balanced budget for any economy to 'grow' is one of the drivers which lead ordinary Australians to thinkk about govt budgets as they would their household cashbook and penalise any political majority at the booths if it doesn't see it likewise and act accordingly. This is a gross misinterpretation of the National economy engine.
This engine has two levers for govt with which to control inflation and recession, money and tax. The first, Govt injects funds (digital cash) to grow the economy. The second is to collect tax and set interests rates (cash and bond rates) when it grows too fast and to avoid a number of nefarious effects. You can argue there is more to an economy and governance, but those arguments are about details, the economic equiv of financial markets' 'derivatives'.
Read more:
https://insidestory.org.au/simpler-fairer-and-more-effective
National Turnover Levy
Corporate Minimum Tax
Digital Services Tax
Financial Transactions Levy
Expanded Luxury Tax
GST Compliance Overhaul
This isn’t radical — it’s overdue. If working people have to pay their fair share, so should the rest.
The Sunday Shot 