Discussion has already started about what Jim Chalmers should do in the May budget. He has said it will focus on economic reform. That’s good – depending on what the reforms are.
One line of reasoning is that taxes have to go up to pay for more government spending. Indeed, this argument has recently been made by the Grattan Institute on these pages. They wrote: “Spending discipline is necessary, but not enough for the world we live in”. Translation: we need higher taxes because Australians expect more government spending.
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