Treasurer Wayne Swan believes tax cuts will address wage growth issue
Wednesday February 27, 2008
In a speech given to business leaders, Australian Federal Treasurer Wayne Swan has assured unions that the $31 billion in promised tax cuts over the years to come will be enough to take the thumbscrews off family budgets, as it would give them more money and possibly a better mortgage rate in the future.
This could also ease the problem of current worker shortages, with a low taxed income acting as an incentive for people to join the workforce.
If the unions listen to Swan, the reduced upward pressure on wage growth could make it easier to keep inflation in check, driving the average mortgage rate down.
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