Following on from my earlier post [see post 26th May], what should the Labour Govt do?

They are correct to target middle-class welfare, but they haven’t been prepared to ‘bite-the-bullet’ as they should have. They had a mandate from a populace who recognised that the recession was not of their making, and therefore the perfect opportunity to impose tougher conditions on various sectors of the economy.

For one thing, they would have elicited understanding from most people if they had rescinded their promised middle-class and especially upper income, tax cuts. These tax cuts were originally only proposed because they had to try and keep pace with a hugely spending Howard government, desperate to spend themselves back into peoples’ favour [thence into power for a fourth term]. Surely, with the new economic environment, people would understand if they were rescinded?

The other is a simple one, but one that is only for a courageous government: raise petrol taxes! It is an option that would not only raise revenues but would encourage conservation, in one fell swoop. However, unfortunately I don't think the Rudd Government would have the courage for this one, just as the Howard Govt didn't.

-A