History …

The budget’s in and the love media does its best …

Cornered Labor chooses brave way out

thunders the Silly Morning Herald. Under which, there is a lengthy article that does its best to be kind but can’t quite draw the veil over Labor’s utter incompetence admitting along the way that most of the measures in the budget are unlikely to pass into law before the election and …

No, the purpose of this budget is not vote-buying – it is reputation-rescuing, a last-ditch attempt to influence what history will say about the Rudd-Gillard government  as an economic manager.

But there are savings …

The strength of this budget – should it come to pass –  is that Swan has found sufficient saving measures (90 per cent of them tax increases) to cover the cost of the painfully slow phase-in of the disability insurance scheme, the Gonski school funding reforms and other new spending measures.

… well not so much savings actually tax increases.

The SMH poll reveals …

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In the Fin Review Laura Tingle also plays up the heroism …

Swan’s bold retreat in face of political defeat

… and compares the budget with Russia’s scorched earth policies. She perhaps didn’t stop to think that the scorched earth in question isn’t only the country the new government must march over, it’s also the country we poor peasants have to live in.

At the same time, it is a strategy that locks in its legacy reforms in education and disability.

The ALP have been in power since Saturday 24 November 2007, their so called legacy reforms are not yet in place. A treasurer who cannot budget a year in advance pretends to plan the first ten years of these twin embryos lives! Give me a break.

Colour and movement, like everything else this government gives us, it’s been spun so hard it comes out dizzy. It does serve though, to keep us from thinking about the $1.1 billion dollar surplus promised last year, which over recent weeks has burgeoned auction style into a $17 billion deficit and finally comes in at $19.4 billion.

History beckons, Mr Swan …

John Frum …

On the 21st of December at 10.12pm Australian eastern daylight time the Mayan Calendar came to its conclusion and the world ended.

Well, it didn’t actually, I exagerated. A lot of people thought it would, though, but so far all predictions of the last of days have proven false. So don’t drink the Koolaid.

Not all vacuous predictions are so pessimistic. For all the glass half empty folk there’s got to be the odd glass half full person. In the opposite corner we have the cargo cults. Things have gone bad, they ain’t what they used to be, young people these days … but if we renounce the new evils John Frum will come in a very large aeroplane and deliver all manner of material wealth and we will all be rich, like we had our very own carbon tax or mining tax.

In 1941, followers of John Frum rid themselves of their money in a frenzy of spending, left the missionary churches, schools, villages and plantations, and moved further inland to participate in traditional feasts, dances and rituals. Wikipedia.

That was in the New Hebrides, now Vanuatu. It worked, of course …

… some 300,000 American troops were stationed in the New Hebrides during the Second World War, bringing with them large amounts of supplies, or “cargo”.

And I am sure it will work again, Wayne Swan’s new John Frum is a mining magnate, Wayne’s done the “frenzy of spending” bit, but I’m pretty sure that none of the missionary schools were given new school halls, the churches are under investigation, villages and plantations even factories have been abandoned, we have been urged to move back from the coast. The labor party have indulged in no end of “traditional feasts, dances and rituals” especially, but not exclusively in NSW …

After the war, and the departure of the Americans, followers of John Frum built symbolic landing strips to encourage American aeroplanes to once again land and bring them “cargo”.

We must do likewise to bring back the mining boom, share out the wealth, cast out the snakes and carbon pollution …

Pink batts, I am sure, would make excellent symbolic landing strips …

Budget speech …

I am pleased to be able to bring you Wayne Swan’s budget speech …

Madam Deputy Speaker, I move that the Bill now be read a second time.

The four years of surpluses I announce tonight are a powerful endorsement of the strength of our economy, resilience of our people, and success of our policies.

In an uncertain and fast changing world, we walk tall — as a nation confidently living within its means.

This Budget delivers a surplus this coming year, on time, as promised, and surpluses each year after that, strengthening over time.

It funds new cost of living relief for Australian families.

It helps businesses invest, compete and adapt to an economy in transition.

And it finances bold new policies to help Australians with a disability, the aged, and those who can’t afford dental care.

It does these things for a core Labor purpose:

To share the tremendous benefits of the mining boom with more Australians.

To create more wealth, prosperity, and jobs; spread more opportunity; and advance the living standards of millions of families and pensioners on modest incomes.

Tonight we make a forceful statement that ours is one of the world’s strongest economies and fairest communities.

Not even a sovereign debt crisis in Europe or unprecedented natural disasters here at home could deny Australia this substantial achievement.

The deficit years of the global recession are behind us. The surplus years are here.

Surpluses built on some difficult savings, which avoid vulnerable Australians and frontline services, and don’t compromise our investments in productivity.

Surpluses that provide a buffer against global uncertainty, and continue to give the Reserve Bank room to cut interest rates for families like it did just last week.

This Budget is about discipline and restraint but also about priorities; ensuring precious funds are redirected to the purposes and people that need them most.

Across the budget, by saving and redirecting $33.6 billion, we’re balancing the books.

Making room for $5 billion in new payments to households.

Finding an extra $714 million to help companies compete, on top of the $3.7 billion in small business tax breaks.

Funding the historic first stage of a National Disability Insurance Scheme.

Investing in dental services for those who can least afford them.

Strengthening the aged care system.

Investing in productivity and competitiveness by building on key improvements in health, education, infrastructure and clean energy.

Staying true to our Labor ideals and to the promise of a fair go, converting economic success into real benefits for the majority of Australians.

The deficit years of the global recession are behind us. The surplus years are here. Oh, whoops that was last year’s …

Debtski …

Total tax revenue last financial year … $317 billion.

Projected for this year … $340 billion.

Increase over last year 7.25%.

Yes, I said increase. Mr Swan and Miss Gillard are crying woe is us because of an unexpected fall in government revenue. If you expect more than a 7.25% increase in annual income you may well be disappointed!

There are three things to consider expenditure, expenditure and expenditure. These are the key to the budget black hole.

And the government continue to promise plenty of expenditure …

Super and Cyprus …

Let’s eat the rich …

Well let’s at least get seriously jealous and really hurt them …

After all it’s good that we let them employ people, pay lots of tax and spend money, we let them off  having to live on the age pension, we don’t make them live on New Start. Cool.

Let’s raid their super … big problem, one thing that the hysterical class warriors, from Rob Oakeshott to Wayne Swan via Fairfax’s Peter Martin, seem not to realise is that for people with squillions super offers a chance to reduce tax by a paltry amount. Here’s Peter Martin …

THINK about an executive on $1 million a year. Not quite one of Joel Fitzgibbon’s “battlers”, but someone several rungs above. His or her company pays a legislated $90,000 a year into a super fund of their choice, the payment is taxed at just 15 per cent. So instead of paying $41,850 in tax, the executive pays just $13,500. The gift from the tax system is $28,350.

What a terribly wicked rich person, well no what a complete load of bollocks, once the numbers are corrected it reads …

… a legislated maximum of $17,190 per year into a super fund of his or her choice; … The gift from the tax system is $5415.

The fact is payments into super are capped therefore the capacity to lower tax is also capped at a fairly low figure. The way to raise money from super is to forget the very rich, just hit all those who’ve been diligent in saving for their retirement. Those who gambled away their income have made their contribution.

But, notice too, the reference to a gift. I have worked hard, I have provided employment to others, we have paid our taxes and contributed to our retirement funds.

SOMEONE on $300k pays about $113k a year income (little or no govt benefits) tax yet someone on $50k a year pays about $7700 income tax (plus govt benefits). The person on $300k pays 14 times more tax for six times the wage than the person on $50k. (Terry … )

If you are going to call that amount of your earnings that the taxman allows you to keep a gift the Cyprus solution starts to look reasonable.


The Squandermonkeys …

… and their accomplice.

But first the monkeys. The lie from Wayne Swan  …

At the centre of our challenges we face in this year’s Budget is the huge hit to government revenues we’ve taken since the global financial crisis.

The truth can be seen at Catallaxyfiles


Do visit that link, there are some more graphs and some of the comments are spot on. It will show you that it ain’t the income that’s the problem, it’s the expenditure. But if you are going to sustain the expenditure you have to raise the money somehow. Your superannuation looks nice. The Cypriot solution, it’s obvious.

Enter Rob Oakeshott, he thinks it’s a great idea. Remember that he will leave the Parliament (hopefully very soon and with a large boot up his arse) with a nice big super safety net, provided under a completely different scheme to ours.

I have worked hard and saved sensibly for my retirement, reforms by Keating and Costello helped, the frequent changes to the rules did not. The only way we will ever see a good superannuation system is when the pollies are under the same rules as the rest of us.

Meantime, get your hands off my super, you thieving bitch.