WHY FEDERAL BUDGETS ARE TOTAL NONSENSE A short thread
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This is a budget line in the federal budget. There's a large cost ($550 million) in the first year it comes into place, then some smaller revenue projections after thatpic.twitter.com/scWvaqc5M4
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So, what are these costs and revenue?
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Basically, the government is extending tax breaks for small businesses. They are then projecting growth in this sector leading to higher tax income due to these tax breakspic.twitter.com/Cy2BEULYXv
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The idea is, you make it easier for small businesses to operate, they eventually repay you with the tax on all their profits In theory? Fine
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In practice, we've had these measures in place since 2014 and there's still no evidence that they are improving taxation revenue
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As one example, the place where I once worked used the tax concession to buy a printer so that the CEO could afford his Maserati. Hardly a net positive for the government
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What's actually happening here? Well, the government gave small business owners a massive increase in income in 2014. And they want to keep itpic.twitter.com/QXF1SGzgmt
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The revenue you see here - the 50 and 150 numbers - are just hopeful posturing to push through a popular measure that will likely only end up losing tons of moneypic.twitter.com/FDn1j59FGT
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This is true for a large number of budget projections. People predict they'll make tons of money from something in 2021, knowing it won't be there problem if it fails #auspol
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