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I'm a high income earner that would benefit from the originally proposed Stage 3 tax cuts.I'm also a believer that the money could be better spent elsewhere.However, I do strongly feel that handing increased stage 3 tax cuts to lower tax brackets is going to throw fuel on the inflation fire locally, not help address it.Tax cuts are a fiscal transfer. Tax cuts to lower tax brackets are a fiscal transfer to the participants of the economy with the highest propensity to spend that money directly into aggregate demand for goods and services.Demand is demonstrably too high. The money would be better spent identifying the good and services where supply is not meeting demand and increasing the supply of those goods and services.
I'm a high income earner that would benefit from the originally proposed Stage 3 tax cuts.
I'm also a believer that the money could be better spent elsewhere.
However, I do strongly feel that handing increased stage 3 tax cuts to lower tax brackets is going to throw fuel on the inflation fire locally, not help address it.
Tax cuts are a fiscal transfer. Tax cuts to lower tax brackets are a fiscal transfer to the participants of the economy with the highest propensity to spend that money directly into aggregate demand for goods and services.
Demand is demonstrably too high. The money would be better spent identifying the good and services where supply is not meeting demand and increasing the supply of those goods and services.
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