Today’s IMF report on the Australian economy underscores the economic and budgetary risks of proceeding with the Stage 3 Tax Cuts for high income earners, according to economic experts.
The IMF report, which directly refers to the Government’s ability to restructure the Stage 3 tax cuts in a way which “appropriately balance[s] costs on the budget and benefits to the economy”, echoes calls from over 100+ leading economists and tax experts who say the tax cuts for the wealthy are risky and unaffordable given an inflationary economy that puts at risk revenue for essential services.
“When both the IMF and British Conservative PM Rishi Sunak are more progressive on the issue of tax cuts for the rich than our own Government, it’s obviously untenable,” said Dr. Richard Denniss, Executive Director at the Australia Institute.
“The Treasurer’s Budget in May provides the best near term opportunity to put the budget back on a responsible and fair footing.
“The IMF report today echoes what the Australia Institute and over 100 leading economists and tax experts have been advising to Prime Minister: the Stage 3 tax cuts for high income earners are inappropriate for an inflationary economy and unaffordable given the revenue needed for essential services like aged care, Medicare, early childhood education, housing and the NDIS.”
In December last year, 100 of the nation’s most respected economists & tax experts took out full page newspaper advertisements urging Prime Minister Anthony Albanese to reconsider the cuts.