It’s not entirely clear what Julia Gillard is softening us up for following the Queensland flood disaster.

But if a Prime Minister is given the chance to deny the fact they are considering to introduce a new tax and doesn’t take that opportunity, well, you can safely assume that the revenue raising exercise being considered is not a talent extravaganza hosted by Sophie Monk.
Gillard seems to prefer the words “levy” to the more politically suicidal “tax”, but the Government appears to be committed to keeping its promise the budget in surplus by 2012-13 even if it means we pay more in tax at the next budget.
“This is going to require some difficult decisions, there will be spending cut backs and there may also be a levy. I am working on those decisions now and when I’m able to I will announce them at the appropriate time, we obviously have more work to do, we don’t have the total damage bill yet, but I want to be very blunt with Australians, we have a lot of flood damage to repair in Queensland, there will be some economic effects on GDP growth . . .
“We will rebuild Queensland and we will bring the budget to surplus in 2012-13 because that’s what our economy will require,” the Prime Minister told the 7:30 Report last night.
This logic of Gillard’s effectively admits that keeping the budget in surplus, despite a massive hit to the GDP that the floods will result in, is an end in itself rather than means to an end.
The Government is telling us that it makes more sense for us to pay extra tax for the Queensland disaster now, rather than delay the surplus in next year’s budget. If the Federal Budget isn’t there to dip into for something as essential as flood recovery what is the actual point of a surplus? They made a very willing exception for a financial crisis, why not this humanitarian, economic and environmental disaster?
As Annabel Crabb pointed out the other day in this piece, the Gillard Government finds itself in this odd position because since the rise of Kevin Rudd and an attempt to mimic the Coalition, budget surpluses became the raison d’etre of the Labor Party’s budget policy.
This is all quite interesting, but the real question for Gillard is whether it will be politically palatable for her to tell people they should pay more tax while the Government pushes the budget into the black next year because they’ve just decided they really, really need to.
While Tony Abbott’s arguments against the tax (a new great big new tax) have been as typically subtle as the next instalment in the Saw series, much like the Saw series, Abbott is often still a hit at the box office.
Why the hell should we be paying more tax to rebuild Queensland when there are still billions in all this stimulus money sloshing around the system? What would you prefer to have your money spent on? Dudley Fields Primary’s new netball arena or people’s flood damaged houses and businesses?
And while we’re at it, what about that $36 billion National Broadband Network? Aren’t we paying for most of that? Surely priorities dictate that we spend some of this on getting people a new house built rather than worrying about their broadband connection?
Of course this reasoning is somewhat simplistic, but nor is it entirely illogical, and this is what Abbott is relying upon. Especially given that the Gillard’s rebuttal, that the NBN is a totally different kind of expenditure because it will end up “earning interest money”, is very dodgy accounting argument in its own right.
So this comes down to whether you’re willing to pay a tax to help victims of the floods so the Government can keep its promise to bring the budget into surplus. What’s it going to be then?
Facebook Recommendations
Read all about it
Punch live
Up to the minute Twitter chatter
RT @gregprichard: The Victorian Sports Minister has just sent the New Zealand Prime Minister a commiserative email. #stateoforigin
@VanillathunderV fair comeback. But seriously, if that was a try then I'll book my skiing in Queensland this year
@BrettS69 the loveliest thing about post-origin is the sledges from gloating qlders #ratherbeagoodloserthanapoorwinner
That is the video referee howler to end all howlers to end all howlers to end all howlers to end all howlers #stateoforigin
Recent posts
The latest and greatest
Animal experiments won’t cure me from cancer
Lying on a cold table in an unfamiliar place and undergoing a core biopsy was probably one of the most…
If you want to get promoted, laugh at the boss’s jokes
Red alert, ladies. Making jokes about your ability at work is not funny particularly at board level.…
Need someone to do your dirty work? Try God.
Punishing the baddies is only fun in the movies. In real life it’s messy, expensive, and fraught…
Nosebleed Section
choice ringside rantings
From: They must pay for one’s bitter disappointments
Michael S says:
"A teacher at Geelong Grammar had criticised her for using words that were too long, which had left her confused and had made her doubt her ability to write essays. She became ''quite distressed'' when her English marks began to fall." I can sympathise. My scholastic mentors conveyed to me a causal relationship… [read more]From: Welfare for breeders is a bonus for everyone
Change Up! says:
I have no problem paying my taxes. As a single, childless person on a very decent income, I can afford it and not have my life severely altered. Plus I understand that my taxes paying for things like schools, childcare and infrastructure is ultimately a good thing. A better community is better for me… [read more]Gentle jabs to the ribs
They must pay for one’s bitter disappointments
A private school girl’s family is sueing her elite, extremely expensive private school for not… Read more

Most commented