Welcome to Finance and Fury

Today will be a quick update for the upcoming election and policies in response to the budget plans released last week. This election is becoming a battle for votes among salary earners.

In the past we have talked about class warfare strategy – it’s a tactic being used by both major parties.

Breakdown:

  • Where is each party is hanging their hats with incomes and taxes?
  • Liberals announced tax cuts at the last budget last year
  • Frydenberg’s affirming even more tax cuts for individuals and businesses, spending on education and infrastructure
  • A reward for effort, aspiration, and enterprise, upholding personal responsibility and providing a helping hand where needed
  • Next generation does not have to pick up the tab for the last generation
  • Liberals are promising other things too like a budget surplus of $7.1bn which is a massive turnaround from 6 years ago when they took office

Tax original plan under Liberals:

  1. Provide immediate relief by increasing tax offset
  2. Protect income earners from bracket creep – wage growth with no threshold increase pushes people into higher tax brackets
  3. Abolishing an entire tax bracket – incentivising hard work
  4. Doubling the low and middle-income tax offset from 2018 – 19
  5. Structural reform by lowering the marginal tax rate to 30% for earners of $45k to $200k
  6. Limit the amount of tax as a share of the economy
  7. Being in surplus now means the government can reduce their revenue
  8. The previous episode explaining Reagan’s approach
  9. Someone earning $300k was paying 10 times more tax than someone no $45k
  10. What is Shorten’s response? Calling the budget radical right wing?

Exposing shorten

  • Claiming tax reductions are the same as giveaways. A giveaway to let people keep what they work for?
  • What is Shorten’s background and what he represents vs what he has?
  • Morrison summed it up best – why would you work hard under the Labor government?

Labor’s budget plans:

  1. Alternative tax cuts and relief from bracket creep
  2. Said that 4.5 million workers earning between $48k and $90k will be better off under their plan, but are yet to release the details.
  3. ANU centre for social research has said under Labor there will be an increase in tax revenues of $39 bn over the years until 2024, which is a 5% increase from current revenues
  4. Analysts and professors say Labor’s plan will modestly lower income inequality but Liberal’s plan will modestly increase it because they pay more tax
  5. Let’s have a look at some statistics
    1. FT Employed – 6.7m and PT employed – 3.9m – about 10.6m people
    2. 5m people shorten referred to are mainly PT or entry working positions
    3. Median Income (middle) for full-time workers – $78,268 p.a.
    4. Average Income of FT worker – $90,300
    5. Average earnings of all workers (Pt and FT) – $67,243

 

 

What does this mean? The good side

  • Simplified tax codes – this is a good thing
  • Global confidence reaffirming the AAA rating
  • Being on par with taxes in a global economy

 

What is bad?

  • Other bits of regulations, you need less regulation in conjunction with lower taxes to benefit
  • Abhorrent material on platforms tax
  • Encryption laws to get around privacy breaches
  • ISPs banning sites

Summary:

  • Some very good things here with tax cuts
  • Tax cuts are good, especially when they benefit low-income taxes
  • Income taxpayers fund the government, so its good to incentivise them to work

 

Thank you for listening today. If you want to get in touch you can do so here. Please don’t forget to review us and share us with your friends and family.

Resources:

 

 

 

 

Should we be getting charged up for Electric Vehicles?

Welcome to Finance and Fury, The Say What Wednesday Edition Today’s question came from Matt and Lucas Labor’s plan for 50% of new cars to be electric by 2030 plus introduce a carbon emissions target for new cars. The Greens have one-upped this. Today we break down the...

What will the Paris Climate Change Agreement do?

Welcome to Finance and Fury the Say What Wednesday edition. Today we are continuing on from last week’s episode about climate change, so if you haven’t heard it, check out last week’s episode here. Today I will run through the Paris Climate Agreement, and their...

Furious Friday: Is social media at a tipping point?

Furious Friday Is social media at a tipping point? Today we’re looking at the market environment for Facebook, Google, Twitter, YouTube etc… their costs are going to far outpace what their revenues will be. Are they on their way up, or on their way down? EU copyright...

Furious Friday: Are we destroying our own economy?

Welcome Finance and Fury the Furious Friday edition, and welcome to part 2 of talking about the risks and the future of our economy In the last episode, we covered the future of our economy In this episode, we will explore economic subversion and internal reliance...

The evolution of share markets

Welcome to Finance and Fury. This episode will be a little lighter than normal – as we will be looking at the history of share markets – focusing on the ASX, to look at how we ended up with the system we currently have? Also be looking at the makeup of the ASX 100...

Why do Central Bank’s target 2-3% inflation and what are they trying to accomplish by having it in that range?

Welcome to Finance and Fury, The Say What Wednesday edition – Every week answering your questions – Hi Louis, thank you for the great content and the research you put in! I have another question you might be able to tackle: why do central banks target 2-3% inflation?...

How to not get screwed over when buying property

Episode 28 How to not get screwed over in property, the warning signs of scams and how to do your property research Warning signs of scams Off the plan/cold calling companies Buying off-the-plan, or purchasing a property that has yet to be built – The time between the...

What is Luck? And how can we be manipulated through information, destroying the luck that we have

Welcome to Finance and Fury, the Furious Friday edition Last week: Being grateful for what we have, where Australia started and where we have come Today: Luck truly running out How it can be manipulated What is luck? Success or failure apparently brought by chance...

Reducing the barriers to entry for property investments

Welcome to Finance and Fury. In today’s episode, we will be going through how to reduce the barriers to entry to real estate investments, as well as where real estate assets fit into an investment strategy Australian’s love property – It is one of the more popular...

If you think that you’re a victim, you are really your own oppressor! Building wealth and demand in an Inclusive System

Furious Fridays If you think that you’re a victim, you are really your own oppressor! Building wealth and demand in an Inclusive System Welcome to Furious Fridays! Make sure you’re caught up with last week’s episode about the system and what it should provide System -...

Pin It on Pinterest

Share This