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The Budget – Part 2

May 12, 2010

You can’t fool all of the people all the time but KRUDD, it seems, can’t fool the people he thought he could fool any of the time. The budget is a case in point. Channel Nine’s Today show did a straw poll on the peak hour train from Penrith the Parramatta this morning and nine out of ten people hadn’t bothered to watch the budget because “they wouldn’t believe anything the government said anyway”. Even those who seemed to have paid some attention, were remarkably hostile.

Ouch, sounds like Labor’s heartland is a tad frosty.

Peter van Onselen (almost as cute as Tony) nailed it:

KEVIN Rudd’s super profits tax on mining companies can be explained very simply: it is a tax grab with the aim of improving the budget bottom line targeted at a section of the economy he thought couldn’t possibly receive community sympathy.

Our timid Prime Minister only likes to pick fights he thinks are likely to win him popular support. And given the public spending in the wake of the global financial crisis (worthwhile or not), the government needs more revenue coming into its coffers to balance the budget in the decade ahead.

The only problem is that neither of the assumptions Rudd based his tax grab on appears to be holding up to the growing scrutiny the new tax is receiving.

Rudd thought he was picking a fight with greedy mining companies, with large foreign ownership structures. Instead he has picked a fight with greedy mainstream Australians who like to track the performance of their super investments. And they vote.

Oh and here’s a photo of Mr van Onselen . . .

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