Posted by: Bruce | May 14, 2014

Federal Budget 2014 and fuel tax – the great Liberal cash cow.

The swinging voterFrom my stuffed political armchair, upside down on the footpath (I threw it there in disgust); a quick word on the Libs going for the udder with contempt.

I don’t know what it is with the Liberal Party, they seem to have a real thing going for hitting the fuel.

Malcolm Fraser, former Lib P.M. did the most damage years ago with a huge tax on fuel conveniently called ‘oil parity pricing’. We’ve been paying through the nose since and I haven’t forgotten. It cost his government the next election.

John Howard, former Lib P.M. froze automatic inflation indexation on fuel excise. I think that was an exercise in window dressing because he also introduced ‘tax reform’ conveniently called a Goods and Services Tax or GST which benefitted from varying market prices for fuel.

Oh how the Libs must have been itching to get to the amazing cash cow affectionately named fuel, and squeeze the udder dry.

Libs cash cow for filling piggy bankHitting fuel with even more tax really pisses me off and confuses me more than a little. Just about everything around us is affected by fuel prices. It’s not just paying more at the pump; it’s about paying more for everything that has to be transported to it’s place of sale, including food, clothing etc.

The answer is obvious for economists but not to me; so I’ll guess that the flow on effect from price rises in fuel leads to increased GST revenue at the point of sale of items as above. Doesn’t that increase inflation or something important like that? Anyway, you can be sure that any savings for home owners through decreased interest rates will soon be eaten up by the Liberal Government taxes.

http://www.smh.com.au/business/federal-budget/federal-budget-2014-winners-and-losers-20140513-38802.html

Words for today;    Liberal Gov’t Motto;   your pain is our gain.

More to come;    same blog time, same blog channel.

Advertisements

Want to leave a comment?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: