Report

Australia's fiscal straightjacket: eight myths about tax and public debt which are holding us back

5 Nov 2007
Description

We are constantly told that investment in infrastructure is impossible without finding a way to access private funding. It is just too expensive. Tunnels and train lines cost billions of dollars. Funding projects like these through public spending would be irresponsible - what if there's not enough money in the pot to complete them? Governments might have to resort to desperate measures such as going into debt or - shock, horror - foregoing the annual round of tax cuts.

This paper argues that a blanket ban on government borrowing combined with a freeze on the tax-to-GDP ratio is directly responsible for the erosion of infrastructure, and has created a bias against social investments - even those with high returns and strong public support.

Publication Details
Published year only: 
2007
21
Share
Share
Subject Areas
Subjects
Geographic Coverage
Advertisement