Tax hikes, not cuts, are the key

Tuesday, 8 May 2007 

So this is the coalition’s chance.

The importance of the Budget tonight is not so much the tax cuts Costello announces. On their own they could be presented as the sort of ‘clever’ political give-away as Howard tried in Fraser’s last Budget. The reason why Howard is now vulnerable to the charge of being a ‘clever’ politician is that his domestic agenda is exhausted and can no longer be covered by his international one. Without an agenda, he can look like just another politician clinging to power.

Howard has tried to adopt to the new international agenda of climate change but sounds unconvincing, not least because he is so closely associated with the War on Terror it is replacing. Costello is less so and could present himself as more adaptable to the new agenda. So it is his success in selling climate change measures, even if punitive, that is the key to this Budget’s success. If he is convincing, then the give-aways will have some impact.

Posted by The Piping Shrike on Tuesday, 8 May 2007.

Filed under Tactics

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