Post- GFC, taxation revenue did suffer, but Labor ignored it and just racked up the debt that we now have.
And, tax cuts? It was not so long ago that Labor wanted to reduce corporate tax, Liberal and the Greens opposed it.
It's not true that Labor didn't try to increase tax revenue. They attempted to:
- Reform FBT and Novated Leases - $1.8Bn
- Reform Superannuation - Up to $38Bn
- Introduce a (meaningful) Mining Tax - ?
- Introduced a Carbon Tax - ?
Deficit 2014/15 - $40Bn
Labor proposed to reform the superannuation tax loopholes, the Liberal Party opposed those reforms. To give you some sort of perspective on that, Superannuation tax breaks now costs around as much as the Age Pension. That kind of defeats the purpose of the Superannuation system, doesn't it? Close those loopholes and increased tax revenue pays for the Age Pension. Just tightening the loopholes could significantly offset the cost of Age Pensions.
Labor also proposed an eminently reasonable mining tax that would have seen mining companies pay tax at roughly the level that other companies pay tax. This was howled down by the Coalition.
And then there was (shudder) the Carbon Tax. A tax that actually did what it was designed to do - raise revenue and reduce carbon emissions. The Coalition's plan is to scrap that and instead pay more corporate welfare to companies to NOT pollute.
It's absolutely true that Labor shot itself in the foot on a lot of these issues, particularly the Mining Tax. But had the Coalition gone along with these sensible reforms, the budget would be back in surplus, and we could continue to pay for all of the services the Federal Government is now cutting, most importantly Health and Education. The Coalition is hardly alone in opposing sensible reforms, but lets not rewrite history.
Also - you mentioned that Labor wanted to lower corporate tax. That's true. But that tax cut was to be funded by the Mining Tax.
Edited by Captain Awesome!, 07 August 2014 - 02:54 AM.