1 00:00:00,120 --> 00:00:03,720 Speaker 1: Beware the insatiable beast that is the state. The government 2 00:00:03,880 --> 00:00:06,560 Speaker 1: is like a hungry child screaming for more food, even 3 00:00:06,600 --> 00:00:09,119 Speaker 1: though you've just fed them dinner in pudding. Let's go 4 00:00:09,160 --> 00:00:12,840 Speaker 1: across the Tasman where the Treasurer Charmers Jim Charmers, facing 5 00:00:13,000 --> 00:00:16,680 Speaker 1: high debt and deficit. They've managed to achieve the highest 6 00:00:16,760 --> 00:00:19,960 Speaker 1: level of spending to GDP of any government in forty 7 00:00:20,079 --> 00:00:23,000 Speaker 1: years outside of the pandemic there, does that sound familiar 8 00:00:23,040 --> 00:00:25,639 Speaker 1: to you? To deal with this? The IMF has just 9 00:00:25,680 --> 00:00:27,480 Speaker 1: come out and told them they should cut their cloth. 10 00:00:27,520 --> 00:00:31,320 Speaker 1: They should cut spending. They've also suggested, and this gets interesting, 11 00:00:31,360 --> 00:00:34,120 Speaker 1: that the federal government may need to bail out some 12 00:00:34,400 --> 00:00:37,480 Speaker 1: states who are also weighed down by your double ds 13 00:00:38,120 --> 00:00:43,040 Speaker 1: of post COVID governance, debt and deficit. Let's not forget 14 00:00:43,080 --> 00:00:45,959 Speaker 1: this is the lucky country, the one that's been firing 15 00:00:46,000 --> 00:00:48,839 Speaker 1: on all the cylinders that we apparently don't have. The 16 00:00:48,840 --> 00:00:51,920 Speaker 1: flying Aussie ruse, it turns out, haven't quite been putting 17 00:00:51,960 --> 00:00:54,160 Speaker 1: away for a rainy day, despite making hay while the 18 00:00:54,200 --> 00:00:57,640 Speaker 1: sun shines. So what do they do well? There's a 19 00:00:57,720 --> 00:01:02,920 Speaker 1: report out from the Australian this morning. Are considering taxing more. Remember, 20 00:01:02,920 --> 00:01:05,240 Speaker 1: they already have a capital gains tax, the thing that 21 00:01:05,280 --> 00:01:08,679 Speaker 1: we don't have, but Labour's promising to introduce here. But 22 00:01:08,760 --> 00:01:11,320 Speaker 1: they have a discount on it for assets that are 23 00:01:11,360 --> 00:01:13,640 Speaker 1: held for at least a year. So hold it for 24 00:01:13,680 --> 00:01:15,840 Speaker 1: more than a year, you get a discount. Once you 25 00:01:15,920 --> 00:01:18,840 Speaker 1: flick it off, you get half off your tax. Now, 26 00:01:18,880 --> 00:01:21,440 Speaker 1: the Treasurer apparently has been keen on getting rid of 27 00:01:21,480 --> 00:01:24,720 Speaker 1: this discount and is not ruling out doing so again. 28 00:01:25,120 --> 00:01:28,240 Speaker 1: That would bring the Crown an extra ten billion dollars 29 00:01:28,319 --> 00:01:30,520 Speaker 1: in revenue a year. You can see why that might 30 00:01:30,600 --> 00:01:33,840 Speaker 1: be useful to them. So when parties here say they'll 31 00:01:33,880 --> 00:01:36,759 Speaker 1: solve our problems with new taxes, is that the end 32 00:01:36,760 --> 00:01:40,880 Speaker 1: of the story, or does the insatiable beast come back 33 00:01:40,920 --> 00:01:44,240 Speaker 1: for more. This is the problem that is unique to government. 34 00:01:44,400 --> 00:01:47,960 Speaker 1: In private business, as you well know, you only put 35 00:01:47,960 --> 00:01:50,480 Speaker 1: prices up so high in order to cover your costs. 36 00:01:50,640 --> 00:01:54,160 Speaker 1: People have choice about what they buy, and they might 37 00:01:54,200 --> 00:01:57,520 Speaker 1: put you out of business if you don't adapt, So 38 00:01:57,640 --> 00:02:01,200 Speaker 1: you cut your costs, you innovate your change to remain competitive. 39 00:02:01,520 --> 00:02:04,680 Speaker 1: Governments don't have to be competitive. They can raise taxes 40 00:02:04,720 --> 00:02:07,640 Speaker 1: pretty much indefinitely, and the problem with some of them, 41 00:02:08,000 --> 00:02:10,639 Speaker 1: is that given the chance, they bloody well Wood, wouldn't they. 42 00:02:11,600 --> 00:02:14,600 Speaker 1: For more from Early Edition with Ryan Bridge, listen live 43 00:02:14,720 --> 00:02:17,720 Speaker 1: to News Talks at B from five am weekdays, or 44 00:02:17,800 --> 00:02:19,679 Speaker 1: follow the podcast on iHeartRadio.