Saturday, 6 February 2010

Hodgman's Reagonomics

 ABC News (HERE) reported Will Hodgman as saying the Greens’ policy would bankrupt the state.

The Tasmanian Opposition has ridiculed the Greens for promising to abolish poker machines.

Tasmanians lose about $220 million a year on poker machines, while the Government reaps about $55 million in revenue, or 7 per cent of State tax receipts.

The Greens say they want to phase out pokies within five years, leading to fewer problem gamblers and big savings.

However Liberal leader Will Hodgman is sceptical.

“Most Greens policies are right out there in the Never-Never, they bear no practical resemblance to what’s achievable…......... it’s very easy for Mr McKim to come out and make these wild statements [but] how is he going to bring these policies into effect, without bankrupting the state.”

It is not immediately clear why abolishing land tax of about $80m or 10% of the State’s tax receipts over 8 years won’t create an even larger problem.

If one accepts the Reaganomics view Will Hodgman has embraced, that land tax abolition will lead to more investment and jobs why not abolish all taxes? Land tax, poker machine tax, the lot.

You can let Federal Hotels keep the machines Will, but just reduce the State’s take. More investment, more jobs surely?

Or doesn’t Reaganomics apply to the residents of Gagebrook?

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