It's been revealed this morning that earlier this year Cabinet was considering personal tax cuts of up to one billion dollars, but the idea was knocked on the head because advice was received that tax cuts would be inflationary.
That was bad advice. Tax cuts are not inflationary.
However, here's something that really is inflationary: carbon taxes and fuel surcharges that are going to raise the prices of fuel, of electricity and of food.
So, to summarise, the government decided to abandon the idea of tax cuts on the mistaken view that they would be inflationary, yet they've now decided to stampede towards new taxes that have the absolute certainty of being inflationary -- ignoring meanwhile, their own rampantly and inflationary spending binge with our money.
Would you perhaps call these examples of an ideological burp? Or just sheer bloody incompetence? As Gerard Jackson said earlier this year of the very successful Australian tax cuts, "One can only wonder at the intellectual powers of [people] who fear the so-called inflationary consequences of tax cuts while blithely ignoring the Government’s massive monetary expansion."