Monday, March 10, 2008

Please don't cut our tax (right now)

Ross Gittins, in this morning's Sydney Morning Herald, is essential reading:

"Why would any Treasurer with a claim to being responsible lock himself into a promise to cut tax by a given amount in the coming financial year, the year after that and the year after that?

It's hard to be confident of what state the economy will be in at the end of the first year, let alone what it will be like in 2010-11.

Worse, why would any Treasurer with a half a brain promise tax cuts at the top of a boom, when the Reserve Bank and his own Treasury secretary had been banging on for ages about the high risk of an inflation break-out with the economy close to full capacity?"

There is much, much more. "All things considered", as they say in American public radio.