Will Rudd, Swan and co be emboldened by Darling’s popular move?
Alistair Darling’s decision to introduce a 50 per cent tax rate for high earners next April is backed by a majority of voters, according to the first post-Budget opinion poll.
The Populus survey on Wednesday evening shows broad support for the main Budget measures, though there are doubts about whether they will make any difference to the country or to voters’ families.
Nearly three fifths, 57 per cent, have a positive view of a 50 per cent tax rate on earnings topping £150,000 a year, with 22 per cent against. Support is highest among retired people, unskilled workers and those living in Scotland and Wales.
The Rudd government may slug high-income earners with higher taxes to bolster its budget and keep rising debt levels within a self-imposed $200 billion limit.
Next month’s federal budget is set to be one of the toughest in years, against a backdrop of plummeting taxation revenues and an economy tipping into recession.
“Longer term, you have to look at what can be afforded by way of additional support from those who are better off,” Mr Rudd told Fairfax Media’s 3AW, without elaborating.
“Our discipline is don’t allow taxes to get out of control, because you don’t want to strangle an economic recovery. Within that, then of course it’s always possible changes in the taxation mix,” he added.
