There Is Only One Way to Proceed With Stage Three Tax Cuts: Two Wise Men to the Prime Minister

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Two of Australia’s esteemed financial minds are urging Prime Minister Anthony Albanese to break his promise of tax cuts for stage three.

Former Reserve Bank of Australia (RBA) governor Bernie Fraser and the former head of the Australian Competition and Consumer Commission (ACCC), Alan Fels, are among a group of over 100 economists who have called on Prime Minister Anthony Albanese to abandon plans for the third stage of tax cuts.

Professor Fels says, “The cuts are strikingly inappropriate.”

They have argued that there are more effective ways to stimulate economic growth, such as investing in infrastructure and skills training, which would help to create jobs and boost wages.

The economists believe that the stage three tax cuts would do little to stimulate growth, as higher earners would likely use them to save or buy property – activities that contribute little to overall economic activity. These measures are unlikely to create jobs or increase wages in any meaningful sense; instead, he argued that we should focus on addressing underlying structural economic issues.

“Let’s be honest about this: They didn’t say they would support the tax cuts because they thought this was a great social reform,” Mr Fraser says.

As such, the consensus among Australia’s leading economists is clear: only through careful examination of where funds can best be allocated towards more effective measures like infrastructure investment can we expect true long-term prosperity for all Australians.

The proposed stage three tax cuts, which would take $250 billion out of the budget over the next decade, have been met with strong opposition by financial experts and economists. This assessment comes as the government has just acknowledged its structural deficit and is looking for ways to make up the shortfall.

The debate is ongoing on whether stage three tax cuts are necessary, given Australia’s current financial situation. The government needs to weigh up carefully how it wants to spend its resources before making any decisions on taxation policy.

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