The Budget is not the only thing in deficit, its confidence!

[oracle]

You've obviously swallowed the Labor-fed media spin for the masses.

Actual revenues received by the Govt continue to go up.

Yes, I do know that.

Forecast revenues in the last couple of years by Treasury were wildly optimistic.....so the Govt simply swallowed it all and went out and spent accordingly. No prudence. No checking. No caution.

I should have been more clear, but that is exactly what I meant, the forecast revenues were based on Government believing they can introduce whatever policies/taxes they like and businesses will just cope it and continue to invest/prosper while the Government revenues will just keep going up at the rate of 10%+.

Then the actuals come in and whoops.....what happened to the forecast revenue ?? Whoops - actual revenue isn't anywhere near what the forecast was.

Where's the Govt's safety margin ?? There is none.

What's the Govt's plan ?? There is none. Borrow more from overseas. Blame the GFC....it happened over 5 years ago but it's still good to trot out every now and again. Blame Treasury. Blame Howard and Costello from 12 years back when they ran surplus after surplus.

Blame anyone, just not the Govt in control.

Agree completely.

Cheers,
Oracle.

 

[HotRod]

The majority of tax comes from PAYG and less so from business.

I would have thought that making the business environment as conducive as possible would have two benefits:

• More business tax paid
• More PAYG paid

More revenue.

The other end of the spectrum is to remove inefficient taxes and programs:

• MRRT
• Carbon Tax
• Middle class welfare

Top it all off with a broader and higher consumption tax and you can begin to tinker with things and brings rates of tax down.

It happened before and it'll happen again.

This government has done the complete opposite with the completely opposite result.

Who'd have thunked that???

 

[The Fence]

Lowering taxes promotes activity.

Increased activity increases tax revenue.

Raising taxes blunts activity....etc etc...

 

[BayView]

Lowering taxes promotes activity.

Increased activity increases tax revenue.

Raising taxes blunts activity....etc etc...

yeah; it's a tough one.

Personally, I reckon to lower taxes is the right way to go.

More activity will ultimately return the decreased tax back to the Gubbmint, and might stimulate more investment, manufacturing, jobs, etc.

I think the Gubbmint also has a mandate to look for ways to reduce un-necessary spending, look for ways to cut costs - just like every other business has to if they want to increase profits and profitability (increasing revenue notwithstanding).

 

[BayView]

For me, GST at 15% is the next step. If they did that and completely cut out middle class welfare then we could return to surplus.

Cheers,
Michael

Evil capitalist scum.

The only prob there might be that we will force more and more spending to occur online (and O/S) as cost of goods and services here go up.

It quite possibly will result in more job losses.

I'm a fan of small government, but it seems most Aussies aren't...

Small Gubb fan here.

 

[The Fence]

Small Gubb fan here.

mee too then....

Big Govt. has proved NOT to work.

Obama & Dems are growing Govt, taxing the rich/business, how do they think this is sustainable????

Unless they give businesses some slack they will just shut up shop as it wont be worth the effort.

It seems as though that's really what they want, everyone relying on Govt.

What happened to the free world???

 

[Peter 14.7]

Everyone want smaller Government excepts when it impacts them in my experience.

Why not close wrongly located defence bases?
Why not abolish the states?
Why not allow development to be market driven, no planning controls?

Should I be allowed I buy a block in say MOna Vale and put a 10 storey up next to Michaels new 3 apartment block?

Thats jobs, lower housing, employment, meeting demand, using less land?

What we need it a COMPLETE review of our country structure.

Abolish taxes under the poverty line of $30k but decrease welfare to only aged pension and the truly disabled. I wonder how many on those on the dole, working black-market, on a disability pension would suddenly find work!

No more taxes but a huge saving in welfare payments and the bureaucracy to run that. Overall win.

Peter 14.7

 

[Peter 14.7]

http://www.theage.com.au/business/target-sacks-260-in-geelong-20130612-2o2yq.html

More Confidence deficit.

Peter

 

[buzzlightyear]

http://www.theage.com.au/business/target-sacks-260-in-geelong-20130612-2o2yq.html

More Confidence deficit.

Peter

And at the same time Cotton On whose HQ is also in Geelong is generating up to 500 new jobs. Confidence surplus?

 

[Peter 14.7]

And at the same time Cotton On whose HQ is also in Geelong is generating up to 500 new jobs. Confidence surplus?

Got a link of some data to read. Peter

 

[Ideo]

And at the same time Cotton On whose HQ is also in Geelong is generating up to 500 new jobs. Confidence surplus?

Nah, that's just spin and people burying their head in the sand

The sky is falling! The sky is falling!

 

[Peter 14.7]

Nah, that's just spin and people burying their head in the sand

The sky is falling! The sky is falling!

Just did a search.

Last year it was 500 jobs, recently 400 Jobs. Presently advertising for 25 Jobs.

So yes it is a good news storey and they do sell overseas.

Whilst I am over the ALP and Gillard Gov I do feel like she cannot take a trick. I guess in the end we all need to work in services and hope the mining keeps going. Major Structural Reform to TAX and EMPLOYMENT is needed.

Regards Peter 14.7

 

[Aaron_C]

The ALP are getting more and more desperate. If you thought their internal conflict has been dysfunctional thus far, it will only get worse as we tick down to September 14 (Assuming Gillard doesn't break another promise).

 

[Peter 14.7]

The ALP are getting more and more desperate. If you thought their internal conflict has been dysfunctional thus far, it will only get worse as we tick down to September 14 (Assuming Gillard doesn't break another promise).

And assuming Gillard is still in charge. Peter

 

[Ideo]

The ALP are getting more and more desperate. If you thought their internal conflict has been dysfunctional thus far, it will only get worse as we tick down to September 14 (Assuming Gillard doesn't break another promise).

I think everyone is wishing the date was actually sooner. Except for maybe Abbott - I can imagine feeling some amount of glee at watching this all unfold.

Mates in the ALP are just wishing the self implosion would end so they could start rebuilding.

 

[Peter 14.7]

I think everyone is wishing the date was actually sooner. Except for maybe Abbott - I can imagine feeling some amount of glee at watching this all unfold.

Mates in the ALP are just wishing the self implosion would end so they could start rebuilding.

Yes politics aside, this is an amazing election. Like the ALP in NSW in 2011 a loss is all but guaranteed. We had to wait then so we wait now.

Being less doom and gloom I am encouraged that despite having had essentially a dysfunctional government for the last three or so year Australia has not fallen over completely and show surprising strength.

THe ALP must see this loss at a message to get the house in order. Without a genuine opposition the NLP will get lazy. Australia has been successful because of the limited but effective two party system. If we break in to many minor parties then go the way of Italy with unworkable Coalitions going to the polls every 12 months or so.

Read this last night. Old but sums up the ALP issue. Controlled by factions with mates looked after.

http://www.abc.net.au/unleashed/55454.html

Peter

 

[Peter 14.7]

To all the economists out there this article seems to be a well thought out statement that all is not that bad.

http://www.theage.com.au/comment/bi...in-the-sands-of-ignorance-20130612-2o49g.html

Care to comment, Peter

 

[AlmostBob]

picture the last 2 dodo
"squark, Its not that bad, Dinosaurs went extinct millenia ago, compared to them we are doing OK"
If I went bankrupt, not be much consolation that someone else went bankrupter
There should always be a plan B

 

[dan c]

To all the economists out there this article seems to be a well thought out statement that all is not that bad.

http://www.theage.com.au/comment/bi...in-the-sands-of-ignorance-20130612-2o49g.html

Care to comment, Peter

Pretty much agree. Interest rates are at historic lows, unemployment is below 6%, and has been for a number of years, and we had one quarter of negative growth during the biggest financial crisis since the depression.

Yet the 'surplus good / deficit bad' people will tell you the economy is stuffed. The numbers (growth, net debt, unemployment, IR) suggest otherwise.

My theory is we got fat and happy in the late 90's early 2000's predominantly because of easy credit. Households were living beyond their means. Credit was squeezed during the GFC, and lending hasn't returned to pre GFC levels, so people feel have to live within their means. It means they can't spend as much, and they feel poorer because of it.

 

[Aaron_C]

picture the last 2 dodo
"squark, Its not that bad, Dinosaurs went extinct millenia ago, compared to them we are doing OK"
If I went bankrupt, not be much consolation that someone else went bankrupter
There should always be a plan B

I agree. Only idiots use that kind of logic to justify things.