Hockey and Costello face off on tax
Peter Costello has fired a damaging salvo at the Abbott Government just weeks out from its second budget, describing its approach to taxation as a “morbid joke”.
Ever since the government released his tax discussion paper calling for a “lower, simpler, fairer” system there has been nothing but suggestions for taxes that are higher, more complicated and less economic, the former Liberal treasurer said.
“Lower, simpler, fairer is looking like a morbid joke,” Costello said on Tuesday, citing a proposed bank deposit tax and a push for a greater contribution from multinational companies.
“The government needs to restart the conversation about getting taxes down, not up.”
He also slams Labor and the Greens, saying using the tax system to re-distribute income would trap Australians in poverty.
“The tax system is there to raise government revenue at the lowest cost in the most efficient way doing the least damage to the economy.”
Treasurer Joe Hockey was not impressed with the Costello critique, lamenting the fact his Liberal predecessor had more tax revenue to use during the Howard government years.
“Everyone is entitled to give free advice and, frankly, that’s what it’s worth – it’s free advice,” he told Sky News from New York, pointing out the Abbott government had abolished the carbon and mining taxes.
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Labor frontbencher Brendan O’Connor agreed that Costello had more in the Treasury coffers than most treasurers.
“He’s got every right to expose this government’s failures,” he said.
“At the same time he’s seeking to defend some of his decisions that have led to some problems both for our government and indeed the current one.”
Significant exemptions for the richest superannuants was one example, O’Connor said.
