The Treasurer is all over the place when it comes to his understanding of negative gearing, commenting on aspects that don’t apply and showing a complete lack of understanding while at the same time redefining words and concepts on the run.
The Treasurer admitted this week, in reference to Labor’s negative gearing reforms: ‘Obviously, those who are more engaged in negative gearing have higher incomes than those who are on modest incomes.’
In opposing Labor’s reforms to negative gearing, the Treasurer Scott Morrison has described negative gearing as ‘an entirely legitimate practice to offset the cost of earning an income against that income’. It is evident that the Treasurer is unaware that that is not actually negative gearing and is a practice unaffected by Labor’s policy.
While reports are circulating that Prime Minister Turnbull is preparing to cave into the former deposed Prime Minister and protect what his own Treasurer described as the ‘excesses’ in negative gearing.
When asked about negative gearing excesses, the Treasurer redefined ‘excesses’ and said that they are now ‘enthusiasms’. The government has refused to tell Australians and the Parliament what the excesses in negative gearing are. The reality is that by not addressing what the Treasurer calls excesses or enthusiasms in negative gearing, the Prime Minister and the Treasurer are choosing to protect tax breaks for people buying their seventh house instead of protecting older Australians from cuts to their pensions.
Day by day it is obvious the lack of economic leadership by the current government and, in particular, the Prime Minister. Last week ended in chaos and dysfunction; this week, the chaos and dysfunction continues when it comes to the government’s plan for the economy and for taxation reform.