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Aug 9, 2013

Economic lessons from WA: nobody booms over this bust

The Western Australian government's budget and Rio Tinto's continuing reliance on the Pilbara reflect economic reality rather than political or corporate rhetoric, write Bernard Keane and Glenn Dyer.

An Australian government with rising debt, budget deficits, slashed spending, broken promises, criticism that with such a strong economy the budget should be in healthy surplus, forecasts of higher unemployment and lower growth — it all sounds familiar, yes?

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One thought on “Economic lessons from WA: nobody booms over this bust

  1. cnewt27

    I note the “group think” economic verity that stamp duties are “inefficent”. I complained to the ABC about the use of ABC types endlessly parroting the line that stamp duties are inefficient and was told, I kid you not, that the term was justified because Ken Henry says so. The rationale is that stamp duty on the sale of a house, for example, prevents workers selling up and relocating wherever they are needed to work. Isn’t neo-liberal economics great?
    I can’t see why a stamp duty is any more or less inefficient than the GST>
    Many rich folks buy and sell property, at slashed capital gains tax rates. Stamp Duty, like Payroll Tax, that other favourite of tax whingers, is hard to avoid. You can put property into company names etc but someone pays the stamp duty. The Right hates taxes it can’t avoid. Taxes on wage earners and the poor are marvellously efficient.
    My son works as a builder for a father and son with 2 companies to shuffle him between to avoid paying super contributions. This presumably would be seen as marvellously efficient, like those convoluted family trusts, salary sacrificing etc that the wealthy spend resources setting up to “efficiently” dodge tax so us drones can be efficiently taxed. Good to see Crikey is on board with the mainstream in some regards.

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