The trouble with (these) tax cuts

By Adam Triggs
Updated July 1 2021 - 5:19pm, first published September 7 2020 - 6:30pm
The biggest problem with these tax cuts is that there are simply better ways to stimulate the economy. Picture: Shutterstock

There's nothing like a 7 per cent quarter-on-quarter decline in GDP to focus the mind. It has prompted the government to consider bringing forward its three-stage tax cuts to boost demand and support the economy. This makes sense if Parliament was going to approve the tax cuts anyway. But if Parliament had reservations about whether they are a good idea, the argument that they are a good form of fiscal stimulus is a weak one that shouldn't change its thinking.