Tax cuts and big spending promises inflationary – Greens

Greens Leader Senator Bob Brown has labelled the tax cuts and spending programs of the Coalition and the ALP as inflationary.
 
"Both John Howard and Kevin Rudd are spending to win the election, not to secure the nation's future," Senator Brown said.
 
"If you inject money in the form of tax cuts into an overheated economy you get inflationary pressure. It is far better to put that money into infrastructure and services such as health, education and public transport instead of tax cuts."
 
"The Australian economy is growing strongly on the back of the minerals boom, but rather than investing this windfall to prepare Australia for the challenge of climate change we are locking in lower taxes that may well become unaffordable if the economy slows".
 
"In the last three years the Howard Government has announced nearly $100 billion in tax cuts, and yesterday he announced nearly $10 billion in new spending initiatives. But despite all this largesse there is still no substantial money for investing in renewable energy, public education or public health and still no money to give Australia's pensioners living on $268 per week a genuine pay rise."
 
"Both Kevin Rudd and John Howard should stop this inflationary auction that they have got themselves into. A bit of restraint is what's needed to keep inflation and interest rates low, and to prepare Australia for tougher times ahead," Senator Brown said.
 
Further information: Ebony Bennett 0409 164 603