Abbott’s plans not so bad

Today I’m claiming to be amazingly prescient.  Two things I observed in recent days:

1. The compensation for the carbon tax might go away under an Abbott govt, but so would the carbon tax itself

2. That Abbott had room to keep the most politically popular elements of the compensation package, given how little the taxes (carbon and mining) are actually raising

Today the SMH, no less, has an article pointing out that the govt’s figures are misleading.  This is the top article on SMH.com, but I note it’s from the economics pages rather than the political or opinion pages.  I’m guessing that’s how it slipped through the normal editorial line.  I’d guess it won’t stay top of the SMH web page for long, and that in the dead tree version it’s buried on the inside somewhere.

The Australian yesterday had “exclusive” coverage from an interview with Abbott in which he said that it wasn’t necessarily true that all the compensation would go, with a nod towards the politically popular increase of the tax free threshold.  This increase is good policy as it reduces marginal tax rates for those coming out of welfare into work.  It’d be nice if the National party in NZ could manage to get their act together to do the same.

So, all we need now is for Abbott to point out that the carbon tax has major financial issues in the out years, and for him to say that Education and Health are no business of the federal govt, the mining tax can go to be replaced by state level royalties and the Feds will go hands off on both.  Then all my predictions for this week would have come true.

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