Tax-cuts money better off in super, expert warns Rudd
Fri Mar 7 2008
The Australian --- Page: 20 : 7 March 2008 Original article by Scott Murdoch
LexisNexis Summary
Calls are growing for the new Australian Government to divert $A31bn worth of planned income tax cuts to superannuation. The latest authority to warn that the tax measures would have a dangerous inflationary effect is internationally renowned economist David Hale, who has conferred with Prime Minister Kevin Rudd on the issue. He pointed out that the average Australian income already lifted 8% in 2007, and that the national private savings rate is in urgent need of a boost. Hale also noted that a large surplus of 1.5% of GDP signals the tax system does need reform, but not necessarily in the income tax area. The expert acknowledges that Rudd was forced into making the tax cut promise during the 2007 federal election campaign to match the Coalition's policy.
