Editorial Subterfuge For Political Battle

Illawarra Mercury

Wednesday August 31, 2005

HERE we are, not within cooee of a federal election, yet John Howard and his Treasurer and leader-in-waiting Peter Costello are turning themselves inside out over tax cuts.

There is little disagreement between the parties over the need for tax reform or relief at the higher end of the marginal tax rate.

But Mr Howard is pushing the view that it is wealthier Australians paying the top marginal rate of tax of 47 ? in the dollar who are more deserving of a break at the expense of taxpayers with lower marginal rates.

Mr Costello is warily agreeing tax cuts would be good politically for the Government, but only if they are made across the board.

Tax cuts are carrots to be fed to voters at election time. This debate has more to do with simmering leadership tensions between Mr Howard and Mr Costello.

Mr Howard has been pushing the idea of cuts to the highest marginal rate of tax knowing full well his views are at odds with his Treasurer's more even handed stance.

Bemused Australians can expect to see the two politicians lock policy horns more frequently in the future as Mr Costello's patience runs out with his leader's seeming reluctance to hand over the reins of power.

© 2005 Illawarra Mercury

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