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Coonan backs tax cuts over stimulus payments

Coalition finance spokeswoman Helen Coonan has said that tax cuts would have been a better way of stimulating the economy than the Rudd Governments $900 cash handouts as part of the $42 billion stimulus package.

Coonan told Sky News that tax cuts would have been more beneficial to the economy in the long run.

“We think a part of the general stimulus we would have preferred would have been to bring forward the tax cuts because we think that incremental tax cuts actually does a lot more to stimulate the economy than one-off, poorly thought out cash splashes, some of which goes to people overseas who aren’t going to stimulate the economy.”

She said tax cuts would not only have benefited consumers but also policies to help stimulate the economy.

The news comes as Treasuer Wayne Swan has hinted at possible tax cuts to high income earners in the next budget.

“We have already legislated those tax cuts… what the government will deliver is a responsible, civil and sustainable budget,” Swan said.

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