We have a Federal election looming with many issues coming up & the greatest issue according to MSM & politicians is how political promises are paid for.
Labor tells us that by not giving $80 billion [over 10 years] in tax cuts to multinational corporations & to cut their tax loopholes there`ll be $38 or so billion annually to spend on its policies.
LOTO Bill Shorten & Shadow Treasurer Chris Bowen have explained themselves on this at the NPC on SKY & on QandA
Also clearly explained is the cutting of negative gearing for established housing [new dwellings still can claim} which will not fill the government purse even more,(properties currently being neg geared are not to be affected)
So with the $80 billion in tax cuts off the table & loopholes cut Labor says here`s a cool $46 plus billion straight up.
November 2015 figures show
The taxes that generate the most revenue are: individual income tax at $170 billion or 39.3% of all revenue collected in Australia, income tax on enterprises at $77 billion or 17.7% of all revenue, GST at $55.5 billion
Then going forward
The 2017 federal budget forecast a deficit of $29.3 billion, or 1.6% of GDP. The 2018 budget forecast a deficit of $18.2 billion. This would be Australia’s eleventh consecutive budget deficit
Now the big one
As at July 1 2018, the budget estimate of net debt in Australia was about A$341.0 billion, up from A$174.5 billion in September 2013, when the Coalition took office.
All Australia remembers the debt truck Malcolm Turnbull sat on in July 2009 >
The Opposition’s “debt truck” is back on the road as leader Malcolm Turnbull attempts to recover from disastrous polls in the wake of the OzCar affair [live linked]
The amount it said was $315 billion,so either Labor paid down $140.5 billion by Sept 2013 or that figure was gross
OK,I`ve done the intro & what I really want to know & hey,maybe others out there as well
It`s called MMT,Modern Monetary Theory
There`s been reams written on it and it is all really as clear as mud to the FAR greater majority of us
I tried to find a simplistic Australian video explaining MMT but could not,so here is an American one [but do remember the US does not own it`s Federal Reserve & has not done so since December 1913
Of course we need to know how true this is because here in Australia we own our Reserve Bank of Australia,it is Sovereign & issues currency
An extract from the RBA page.
Full details > here
Today I asked Michael West if he`d compile a video explaining MMT to Australians
So readers who have watched the Youtube vid The Basics of Modern Money,please share your thoughts