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"Keating shouldn't have been trusted" - Keating



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P A R L I A M E N T O F A U S T R A L I A

M O U S E O F R E P R E S E N T A T I V E S

d r JOHN R. HEWSON, M.P, SHADOW M IN IS T E R FOR FIN ANCE M E M B E R FO R W ENTW O RTH

PRESS RELEASE

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17/89 24 February 1989

"KEATING SHOULDN'T HAVE BEEN TRUSTED” - KEATING

Keating eleaifly damned yeateaida^ uut. w£ lile vwn mwuLli when he said, in talking about new taxes, that he believed the political system shouldn't "have an easy resort to the spending from another tax base. And I think Australia needs to think about that,"

Isn't that p r e c i s e l y what he did on the basis of the

considerable additional revenue that he raised from several new taxes, including fringe benefits tax, the capital gains tax etc., as well as by increasing taxes by stealth by relying on "bracket creep" to achieve his budget surplus?

The Treasurer's record on taxation is appalling:

. Keating is the highest taxing Treasurer in history with the tax to GDP ratio now at an historical high of 25.7%;

. tax revenue has increased under the Hawke Government by about 100%, or $41 billion?

. personal taxes increased by 107% and sales tax has

increased by 147% under the Hawke Government, which is nearly double and triple, respectively, the rate of inflation over this period?

. it is worth noting that the Treasurer will have raised about $10 billion in additional revenue from "bracket creep" by July of this year, when he plans to deliver his promised tax cuts. Even if he gives Bill Kelty's $20 p.w. he will only give back about half of what he has raised

through "bracket creep" alone.

Keating is right. He shouldn't have been trusted with all that revenue.

Whatever happened to the Paul Keating who back in 1975 believed in tax indexation as a discipline on government?

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