Should reconstruction be funded by taxes?

Australia's Prime Minister Julia Gillard has raised the prospect of a one-off tax to help pay for the devastation wrought by severe flooding. Is it right to tax residents to pay for a natural disaster?

Ms Gillard told Australian television that there would be spending cutbacks and a possible levy, and that she was determined to balance the budget as well as rebuild shattered communities.

But opposition leader Tony Abbott said "there's a right way and a wrong way to find that money," and suggested that the government should cut back its own spending before taxing Australians, and scrap the controversial A$36bn broadband network plan.

How should governments raise money to cover reconstructions costs? Is keeping the budget balanced a priority after a disaster? Was Australia well prepared for the flood disaster?

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Reply 1

Aj12

Well if the government cannot afford to pay for the reconstruction then there is not much you can do bar something like a one off tax or borrowing large amounts of money which in the long term is very unsustainable

Reply 2

Squidgyness

Original post by Aj12

Well, yes. but the point is that they have a $36b plan for broadband coming.

Bradband vs. Clean water and shelter. Know which one I'd prefer.

Reply 3

Aj12

Original post by Squidgyness

Well, yes. but the point is that they have a $36b plan for broadband coming.

Bradband vs. Clean water and shelter. Know which one I'd prefer.

Well the broadband expansion is pretty crutial for the economy tbh.

Reply 4

The Next Left

She's in a real dilemma. Due to the strength of the Australian economy she has quite rightly said she will balance the budget this year and then return it to surplus over the next few. She is going to really struggle to do this depending on how she decides to raise that money to pay for the devastation caused by the flooding - for those who don't know, the flooding has covered an area of Queensland which is equal to the areas of Germany and France combined. I would think a one-off tax is a good idea, as well as some cutbacks. But I wouldn't be looking at cutting the broadband network at all. That is absolutely essential to move Australia forward.

Tony Abbot, who is an absolute moron of an opposition leader, has suggested she actually scraps her broadband network. He is completely living in the past, like most of his Liberal front bench. Their interests are still tied to the cities - they don't understand the need to diversify their economy and get manufacturing and business to expand into rural areas to provide jobs and growth for the outback areas. The broadband network will encourage businesses to leave the city areas and will solve huge problems of unemployment and poverty in rural areas of Australia. This last paragraph isn't really necessary but I just wanted to show my displeasure of Tony Abbott.

(edited 13 years ago)

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