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Liberal Party in retreat on bracket creep



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CHRIS BOWEN MP SHADOW TREASURER MEMBER FOR MCMAHON

LIBERAL PARTY IN RETREAT ON BRACKET CREEP

For months, Malcolm Turnbull, Scott Morrison and Mathias Cormann have passionately argued that the key economic problem facing the nation was bracket creep.

We could spend at least 46 minutes running through Liberal Party quotes on the evils of bracket creep and the need for urgent action.

SCOTT MORRISON: Bracket creep, as it's known, or the inflation tax as others like to call it, no one sort of, apart from the Government, is running around saying, “well, you know, who's going to compensate the people who are wage-earners next year?” I mean they're going to see a higher rate of tax, wage-earners, next year, if we don't change the income tax rates. No one's saying, “well, they need to be compensated.”

…but what about the compensation for people who are running businesses, going to work every day, backing themselves every day? There's no compensation for them if we leave the tax rates where they are…

PAUL KELLY: Well, no one even talks about it, do they?

SCOTT MORRISON: Well, I do, and I'm quite passionate about it, because I think that's one of the things that is holding the Australian economy back.

Sky News Australian Agenda - 24 January 2016

And on it goes…

Scott Morrison called bracket creep a „job killer‟ and a „growth killer‟ as late as yesterday at the National Press Club.

Today, we saw the first signs of the Government walking away from its plan for bold income tax cuts to address bracket creep.

MATHIAS CORMANN: The detail will be in the Budget to be delivered on the second Tuesday in May. If I might just make the point again. Given what is

happening in terms of comparatively lower wage inflation and given what is happening in terms of comparatively lower inflation right now, bracket creep, to the extent that it is a problem and it is, it is slightly less of a problem than it was. That gives us a little bit of room to recalibrate in a more affordable fashion our ambition in this area.

ABC RN - 18 February 2016

This is exactly what happens when you have a Government without an economic framework or plan.

Scott Morrison has been reduced to advocating for unfunded $4 milkshake and hamburger tax cuts, while his Finance Minister colleague starts to look for the exit.

What does Malcolm Turnbull actually stand for when it comes to: climate change, the republic, same sex marriage and tax policy?

THURSDAY, 18 FEBRUARY 2016

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