Putting tax cuts before debt repayment will generate economic growth, help compensate for flat wages and reduce the “great risk” to the economy posed by a high tax burden, Treasurer Scott Morrison says.
In a pre-budget interview with AFR Weekend, Mr Morrison defended the decision to prioritise tax cuts while he described as “a dangerous lie” Labor’s plans to increase taxes to pay down debt.
He also took issue with the Coalition’s own decision in the 2014 budget to increase the top marginal tax rate by two percentage points for three years, a tax increase Labor says it will reintroduce and make permanent should it win the next election.
“I’ve never thought higher taxes are a good idea,” he said when asked whether it was a mistake t…
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