Tuesday, May 04, 2004

Tax Cuts versus Social Services

I keep hearing about a recent survey over and over again. In this particular one > 50% of respondents agreed with the suggestion that they would prefer social spending over tax cuts. This is being trumpeted by the nanny-state regime very loudly at the moment as some sort of triumph / turning point for the Australian public.

I have 2 questions.

(1) How was the questioned framed?
(2) Do people respond differently when answering a survey as to when they are filling out a ballot?

It is well known that the way you frame a question influences the response you will get. I don't know the specifics of how this question was asked so I won't comment other than to raise it as a possible flag - if I can find a reference I will look. As for the second point, I think people tend to answer social questions in a positive way, but this does not necessarily translate to the way they vote. When it comes to voting time, everyone will pick the party which offers the biggest payout to them - admit it, you do to.

Let's be cynical. In the end the report matters for nothing. The Coalition are going to offer tax cuts, just like they did before the last election. Labor is not going to block them (it would be electoral suicide). This leaves a small pool of money for Labor to offer new initiatives with.

The Coalition target the 'aspirational voters (middle class movers)', 'conservatives', 'country voters', 'families' and the 'rich'.
Labor targets 'union people', 'families', the 'poor' and the 'loopy left (although how they manage to graft the nutters on is always a struggle)'.

I think the biggest issue is the 47% (really 48.5%) top marginal tax bracket, and how ridiculously early it kicks in. Compare that rate to other OECD countries and you'll be in for a big shock. Fortunately this is something that will come into the sights of the Coalition's electoral base, and I'm tipping some movement on this.

Someone once said of politics, "divide and take the biggest share". Sad but true.

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