Our Prime Minister has proposed a $42B stimulus package that he wants to inject into the community in March/April. The proposal would give people who filed a tax-return last year and earned less than $80k a $950 one-time payment. It would also give low income families $950, and low-income families with school aged kids would receive $950 per child. Mike and I qualify for this payment under at least 3 different criteria, so I don’t know if that means we’d get $2850 or just the $950. It reads like each person earning under $80k would get it, so we should at least get $1900.
The hope is that people will go spend the money, keeping stores in business and people in jobs. But we just had one of these packages in December, right before Christmas, and it obviously failed to prevent the loss of thousands of jobs in the new year. So why will this work? Another part of the $42B package is government funded projects that will create jobs. But what about when those projects are over?
The package may not go through yet, as the opposition leader is rejecting the proposal. He would prefer to see income tax-cuts, putting more money in our pockets each week, rather than this one-time payout (that would essentially be the second-time payout). I hate to agree with him, as I can’t stand him, but that makes more sense to me, too.
When Australia goes into a $100B deficit because of all these government handouts, who will they use to fill the kitty again? Australians. By raising income tax, liquor tax, petrol tax, food tax…it might seem nice to get handouts now, but what about when they want it back? We’re also running the risk of coddling a nation who will think the government will bail them out every time things get rough.
The bottom line is that people need to be more responsible with their money, and not rely on the government for temporary bail-outs.
If only we’d won the $30M lottery last night!