The SMH reports:
Labor lost the election because it was proposing higher taxes and not because the public rejected bold policy reform, former prime minister Paul Keating said.
Speaking on the ABC’s 7.30, Mr Keating said the lesson of Labor’s shock loss was not that oppositions could not be brave with their policy agendas, but that the public supported lower taxes.
A great Labor PM.
In stark contrast to failed leader Bill Shorten’s class-warfare strategy targeted at the “big end of town”, Mr Keating said the top marginal tax rate should be cut further, to no more than 39 per cent.
“I cut the top marginal rate from 60 per cent under John Howard, to 47 per cent. It is still at 45 per cent 35 years later, how pathetic is that? The top marginal rate in Australia shouldn’t be a jot over 39 per cent,” he said.
High top tax rates just lead to high levels of avoidance. When Cullen increased the top tax rate from 33c to 39c, the tax from the top income earners fell.