alex white's picture
Mon, 15/10/2007 - 8:15pm — alex white

The Liberal Party has started their reelection campaign with an astounding example of voodoo economics - a big ticket tax cut.

While this is good politics, it is bad policy and bad economics.

Senior economist with HSBC, John Edwards, says the tax cuts would put upward pressure on inflation.

“It certainly means interest rates would be higher than they would otherwise be,” he said.

“I cannot imagine were it not for an election the Treasurer would be contemplating these tax cuts of this order.