To the editor Editorial

Friday, 01 December 2000


    Not such a super idea

    ASFA is asking government, by eliminating tax on super contributions, to give up $3 billion in revenue today so that contributors will have more to spend in retirement, without showing how the revenue can be replaced or which public goods and services we can do without today. This being the normal way of special interest groups, Canberra's "revenue neutral" chant is a pointedly rational response. To accede to ASFA's request government would have to take from the right pocket, as either additional taxes or reduced services, what it had put in the left one. The only effective way for the typical citizen to be able to consume more in retirement and maintain today's public consumption is to cut private consumption today and invest the savings. 


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