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$950 - Opinions?


forrestgump

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how does the 100k threshold to qualify for the 950 work? is it based on your 2007-08 tax year income, a figure which could have been bloated by the capital gains made during that year?

 

 

A flat handout is seen to better stimulate the economy than the tax cuts which the Coalition are advocating. 950 is worth a lot to someone earning the minimum wage and they are likely to spend it, whereas a tax cut would not give them anything meaningful. Tax cuts benefit high income earners more.These people most likely already have money and if they wern't already spending their money, then further money through tax cuts is not likely to induce them to spend

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G'day suti. Must be doing well with those kind of cap gains. :biggrin:

 

I personally think we'll look back at these cash handouts in future years as a mistake. They don't need to cut taxes, just hold off on these payments, maybe direct them to infrastructure instead.

 

Lee Kuan Yew, architect behind Singapore's rise, doesn't think cash handouts are a good idea. Like him or not, he is usually right. He has a reputation for sharp and insightful analysis. This is what he says about the handouts:

 

"So those MPs who say, 'Give S$300 to every citizen and we will boost the retailers', they just do not understand the bigger picture. You give S$300 like that and it is gone in a shot, and all the things that they will buy, three-quarters of it are imported"

 

http://www.channelnewsasia.com/stories/sin.../407319/1/.html

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yeah you're right Henrietta, I didn't really intend to bring party politics into the issue, I guess I got little carried away, sorry about that.

And yes I tend to agree that the only thing we can do is to pray for our politicians and also perhaps sending an e-mail to the independent, family first and greens senators. I have already e-mailed Senator Fielding and will e-mail the others later.

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The Gov't should spend some money developing a value add industry here.

 

As an example :we should be the world leading country in solar and we're not.

 

We've possibly missed out on making the most of the recent commodity price boom.So what now ? A massive current account deficet and no way to pay it off.Giving money away for consumption is stupid.They need to INVEST some money in Australia.

Problem is the "leaders" of our great country are all politicians.i.e. egotistical and short term focussed.

 

We need real leaders to run the country not politicians.Regardless of which party they are.

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quoting Nicolas Sarkosy (that sly old dog) in response to Gordon Brown cutting the VAT.

 

"In France we chose investment because when we put France into debt by taking money to invest, in return we have assets, infrastructure. When you put your country into debt to pay for operating costs, you have nothing in return for your debt and you ruin the country".

 

(source SMH)

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It's certainly a shame that we do not possess any signiasficant form of tangible value-adding industry, such as that of manufacturing, to act as catchments for retaining the benefits of the handout here in Australia. A substantial portion of the cash bonus and/or ta rebate will most certainly be spent on imported goods - namely consumer electronics. The rest will filter into the pokie machines and roulette tables. It'll create jobs all right, but jobs that are transitory and existing primarily in industries which service our wants rather than our essential needs. The cash component stemming from our government stimulus can be made analogous to that of water flowing across some landscape. A proprietary supply chain proped by competitive and mature industries which produce tanigble goods would be the figurative equivalent of a rainforest, the ecological diversity of which would enable the system inherent within that environment absorb and retain the hydration. Our economy on the other hand resembles, to a large degree, that of an arid tundra undergoing severe desertification and thus inept at retaining the value of those resources. The benefits simply flow past and flow on towards greener pastures (established industries abroad) which are better equipped and better able to utilize the imputed liquidity. If we think cash in the handles of the populous will allow for prudent capital allocation via the forces of a competitive market, then we would be right - if the domain is a global one. If we desire for the benefits of stimulation to reside within the microcosm that is Australia then I'm afraid the benefits to our capital account, from indiscriminate spending, would be extremely limited in its ability to assist future generations of taxpayers repay that debt in due course. Alas one cannot entrench hope towards solving problems by issuing money alone. If so, we'd surely all be successful venture capitals by now.
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The $950 a great idea I thought, I could go out and spend the lot on lots of things. I first thought of taking lots of weekend trips,staying in motels, and eating at restaurants (helping the tourist industry) With all the kilometres I,d be driving I'd have to get new tyres and a service on the car, (helping the motoring industry) buy a few souvenirs (retail). Then I asked 6 people what they were going to do with their $950. Three said put it in the bank and wait for a rainy day, One said pay my rates Therefore the money she had for her rates already, will stay in the bank) and Two people said they are going overseas soon and will spend it in other countries. No Kevin I don't want my $950 anymore, am I the only one going to do the right thing and try to stimulate the economy.

The only way to get people to spend it is to load up a debit card with $950 on it and then people will have to spend it in this country.

But still I don't want it, why not get some infrastructure happening in this country, that in the future will be greatly needed. For instance,why not a water pipeline right down the middle of Australia getting water from North QLD a few Dams here and there, reaching the Murray Darling and further, hopefully opening up more of Australia to agriculture ETC. Then when things are looking good again the government can sell it off to private enterprise to get their money back or even make a profit for the benefit of all Australians. Just my thoughts hope it makes sence to you all. L.D.

 

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Stimulus Payment Info.

 

 

"This year, taxpayers will receive an Economic Stimulus Payment. This is a very exciting new program that I will explain using the Q and A format:

 

Q. What is an Economic Stimulus Payment?

A. It is money that the federal government will send to taxpayers.

 

Q. Where will the government get this money?

A. From taxpayers.

 

Q. So the government is giving me back my own money?

A. Only a smidgin.

 

Q. What is the purpose of this payment?

A. The plan is that you will use the money to purchase a high-definition TV set or some such thing, thus stimulating the economy.

 

Q. But isn't that stimulating the economy of China ?

A. Shut up.

 

 

Below is some helpful advice on how to best help the Australian economy by spending your stimulus cheque wisely:

 

If you spend that money at Kmart, all the money will go to China .

If you spend it on petrol it will go to the Arabs.

If you purchase a computer it will go to India .

If you buy a car it will go to Japan .

If you purchase useless crap it will go to Taiwan .

 

And none of it will help the Australian economy.

 

We need to keep that money here in Australia. You can keep the money in Australia by spending it at garage sales, going to a cricket match or footy game, or spend it on prostitutes, beer and wine (domestic ONLY), or tattoos, since those are the only businesses that may still be owned by Aussies

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