Saul Eslake, Chief Economist of BAML: it's virtually impossible to cut government spending in ways that do not disproportionately affect people on low to...

Saul Eslake, Chief Economist of BAML: it's virtually impossible to cut government spending in ways that do not disproportionately affect people on low to middle incomes. I suspect at the margin [the budget] will adversely impact the equity of the distribution of income. But I wouldn't overstate that, because some of the measures directed towards the top end - the deficit levy, and the tighter means testing - will work in the other direction. ~ While the Abbott government will raise some taxes in the budget - including the politically risky petrol excise and the deficit tax - Treasurer Joe Hockey says spending cuts will do most of the heavy lifting to reduce the deficit. Mr Eslake says it is more or less inevitable that a budget primarily focused on spending cuts will disproportionately affect the poor. Full SMH article here: (VIEW LINK)


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