Darren Cheeseman (Corangamite, Australian Labor Party) Share this | Hansard source

Thank you, Mr Deputy Speaker. I will, of course, come back to the bill before us today in short while, but I think it is important that we put on record the international context of these issues. I think it is important that we compare what we do here in Australia with other taxation regimes. The reality is that we do live in an international economy and, more than ever, the relationships that exist between our countries and our economies are growing, and I think it is important that we put some of these comments on the record.

So what have we been left to deal with as a citizen of the international community? The American taxation policy and debt levels have had a double-whammy effect. They have deepened their economic crisis and reduced very significantly their capacity to respond with policy settings that will help them dig themselves out of their crisis. In short, America’s previous tax policy has magnified the current financial crisis that is crippling their economy. That crippled capacity makes it much more difficult for their economy to respond. On top of this, the US social policy has lagged behind the standards of most other advanced Western democracies.

In contrast, Australia, with a balanced tax policy, has been able to respond. We have been able to provide both a sensible and a bold response because we know our debt is manageable. I am not an advocate for high taxation. I am a very strong advocate for balanced taxation. I am an advocate for sensible taxation levels that enable us to provide for a decent society. Yes, sometimes the time is right to cut taxes. Sometimes cutting taxes is the right thing to do. There is a right time to provide tax relief. There is a right time to cut taxes to stimulate the economy. But this is very much a judgment call that our government is making. It is not an easy decision to make, but we are making those tough decisions.

A society that can provide decent services through taxation whilst still maintaining budget surpluses whenever possible and taxation levels that enable businesses to grow and thrive is a society that is on the right track. We have seen what the result has been when a group of ideologically-driven neoliberals have waged a jihad on our taxation system. We see it today, I think, right now in America, in an economy that is crippled and that cannot necessarily respond in the way it—

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