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Monday, September 27, 2004

Tightarse Liberals Spend $6 billion

So what about all the budget surplus retiring debt shite that this lot usually come out with? Who gives a rats arse when an election is at stake. The Insiders on Sunday had quite an intelligent debate about budget deficit, thanks in part to Piers Ackerman not being present. However an important point was missed. There is not a single major company that does not use debt to invest in future gains. By having no debt, all future works are financed directly from taxes. By suitably leveraging debt productivity increases and a larger debt can be more easily serviced while lowering tax burdens. To give the Liberals credit, it is not exactly known over what time period the $6 billion is to be spent so perhaps it is too early to come out with the worst tag line in political history (apart from 'Hoax the folks') - spending like drunken sailors. The liberals have played a canny game. They have forced Labor to cost everything, and then spent "like buggery" themselves. The biggest hot button spend is the 30% tax deduction for child care. This is such an important step in the right direction for equality that the tick could yet go into Howards box on October 9th. To complete this policy someone needs to address the supply side of child care (I have just heard the ALP have released a policy to do just this) as the rebate could just cause a quick rise in childcare fees and so we will be back to square one. So far on the femonazi front we have:

+ Childcare 30% tax rebate
- Family tax benefit part B
- They are very strong on women staying at home (RE: Howards speech at his campaign launch)

- Income splitting
+ Childcare places
1/2+ Some weird one day free for 3-4 year old policy (one from Crean perhaps)

So a marginal ALP lead at the moment, though by no means decisive. The coalition rebate is easy to understand, the ALP policy is all over the place. Did I say an ALP landslide earlier? I must have been taken out of context.

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