Levy is distraction politics

Unions say a proposed tax that will hurt workers and small business is ‘distraction politics’ to divert attention from upcoming savage cuts and tax dollars flowing to big business.

ACTU President Ged Kearney said “The Government is cutting tax on big mining companies while planning to raise tax on low-and-middle income earners and small business.”

“We are also seeing the extraordinary move to pay $3.2billion to big business through the Direct Action climate change plan under a scheme with no foreseeable means of achieving its goal.”

“Once again Tony Abbott is asking low income earners to pay more so that the wealthiest can pay less.”

“This levy will hurt workers and is yet another broken promise from the Abbott Government who continues to attack those who least can afford it.”

Ms Kearney said the worker’s tax served as a distraction mechanism.

“The Abbott Government appears to be planning to distract people from its savage cuts to jobs, public services, and social security, by implementing a quick-fix tax it can blame on the previous Government,” Ms Kearney said.

“Unions support fair taxation and a strong safety net that strengthens the economy and makes people’s lives better.”

“Australia is one of the lowest taxing advanced countries in the world, and unsustainable tax cuts in the boom years have put pressure on the budget. We need to raise more public revenue, but to do so in a fair and considered way, not through a short-term political fix that hits low-and-middle income earners. This isn’t real tax reform.”

Ms Kearney added, “The Abbott Government’s claim that the deficit is at crisis levels does not do well under scrutiny,”

“The Australian economy has grown much more rapidly than those of other OECD advanced economies and our deficit is low in comparison. We certainly don’t need a levy.”

“The flood levy is an example of a fair levy implemented in an emergency. There is no emergency – this is distraction politics.”

“Workers aren’t fooled. They want the Abbott Government is stop attacking their wages and their jobs and start make the wealthy pay their fair share.”