Greens Treasury spokesperson, Senator Peter Whish-Wilson, says that the PBO National Fiscal Outlook shows that the Liberals are all at sea with their commitment to supply-side economics claiming that tax cuts will grow the economy and somehow cut the deficit.
Senator Whish-Wilson said, “The PBO fiscal outlook shows that the government’s recent income tax cuts and its proposed corporate tax cuts are going to be paid for through higher debt. The government’s commitment to voodoo economics is greater than its commitment to structural reform of the budget.
“The public debt levels should be increasing at a time when the cost of borrowing is low, but they should be increasing to pay for productive infrastructure, not to pay for tax breaks for wealthy individuals and already tax-dodging multinationals.
“If we took advantage of the low cost of borrowing to invest in public infrastructure then we could make our cities more functional, and make the transformation we need in our energy sector to address dangerous global warming.
“The Greens are realistic about the budget position and are honest that our debt should be rising, but our position is based on sound policy, not on an economic theory discredited in the 1980s.
“Public infrastructure investment would deliver a major productivity boost and make our communities more liveable, whereas corporate and top-end income tax breaks will do none of this,” he concluded.