In early May, the 2016-17 federal budget was released, outlining the government’s proposed plans for revenue and expenditure as well as the fiscal policies that will be initiated in the following financial year. Currently, Australia is experiencing a deficit of $39.9 billion, however the government plans to reduce the deficit to $37.1 billion by 2017 by implementing the plans listed in the federal budget, which will cause the economy to become more efficient and grow faster in the long term. The budget also outlines the government's concern on certain issues and the areas of the economy that needs improvement. Disagreements over the federal budget have raised arguments for and against the governments proposed plans. The main areas that have …show more content…
The most prominent reason is that they will receive a tax cut from the government with the rate reduced from 28.5 per cent to 27.5 per cent. This means that over 870,000 small businesses who are employing over 3.4 million Australians will be affected as a result of this tax cut. This tax cut will benefit small businesses as it will allow them to focus on achieving their goals which include: Maximising profits, maximising sales and increasing market share without worrying about how much tax they have to pay. A decrease in tax may cause small businesses to lower their prices of goods and services to gain more profit, sales and market share which will cause consumers to spend a large amount of money on those goods as they are cheap. This will increase consumer spending leading to the economic growth rising. The reduction of the tax rate will also regulate expansionary fiscal policies, which will motivate firms to invest due to higher returns, especially with the low interest rates that were implemented by The Reserve Bank of Australia on 5 May 2016. This raises the investment component of the circular flow of income. The reduction in the tax rate, introduced by the federal budget will also help the Australian economy tremendously, as more jobs will be offered, increasing the employment rate, while decreasing the unemployment rate. Small businesses also support the federal budget, as in the future there is …show more content…
This is because they will be finally taxed on the profit they earn in Australia. To tax these corporations, the government is introducing a new Tax Avoidance task force of more than 1000 specialist staff at the ATO. Currently, multinationals are causing Australia to lose almost $6 billion in annual revenue that could of been spent on necessary public services such as hospitals and schools. However, now that the federal budget will be implemented, Australia will finally receive the money from the lost tax revenues, which is why multinational corporations are so against the 2016 federal budget. As a result of the new Tax Avoidance task force, there will also be an additional $3.9 billion raised over four years, which will increase Australia’s annual revenue. The government will also implement a diverted profits tax, which will tax 40 per cent of profits that
Our Preamble lists five main goals that are required to help create a strong and stable society within our country. However, money is required in order to achieve these goals. We get this money from the Federal Budget which is the yearly amount we receive in order to better our country. The question here is, are we slicing the pie correctly in relation to the federal budget? In each of three budget clusters, the U.S Government should make adjustments in the way it is distributing money by making changes involving the Big Five, the Middle Five, and the Little Guys.
By raising minimum wage it puts the worker in a place where if they are able to make more money then they are able to spend more money and that would cause the economy to rise in a very positive way. They would have the chance to now go out and be able to buy some groceries, possibly get some diapers, and even have some left over money to possibly buy a nice shirt to go out over the weekend. Since they are now using their money in different places it helps the economy grow and influx itself into a better place. It can now also help the employer of whichever store they are going to feel a bit more assured with hiring more employees to join him or her workforce and create a bigger and better sales
Wayne Swan 2010, ‘Budget Speech 2010-11’ Australian Government. Retrieved May 20th, 2010, from - http://www.budget.gov.au/2010-11/content/speech/html/speech.htm
The Australian Budget is an annually published document which details the Federal Government's plans to affect the level of economic activity, resource allocation, and income distribution through the use of fiscal policy. It describes the framework which the government intends to follow during the next financial year which will result in the attainment of their objectives. The budget is a publication of the government's plans regarding the use of fiscal policy, and is published to parliament and the general public on “budget night”, so as to allow open dissemination about the status of public finances and to promote transparency in Australia's fiscal policy.
John Fitzgerald Kennedy (JFK) ran for office against Richard Nixon during the recession of 1960. JFK took office January 20, 1961, becoming the 35th President of the United States; he was assassinated November 22, 1963. JFK, during his brief time in office he was known for his foreign policy actions to stern communist expansion in Cuba, Berlin and with nuclear weapons. These national crises eclipse his impact on the U.S. Economy, which he was not as we'll known. Contractionary Monetary Policy caused the recession of 1960, as the federal Reserve raised interest rates to curb a growth rate from 1959; with a shrinking economy and unemployment at its highest by the time of the election of 1960—President Kennedy and his administration adopted fiscal and monetary policies to close the recession of 1960.
For government budgeting to be effective, the process that guides it must be an evolving one. As the government gets bigger, it will most likely destabilize the existing method. Therefore, it must change to keep pace with the demands and growth of the country. The process must be capable of handling the complexity of our nation and its multifaceted needs so it will always need revisions and restructuring to face these new challenges. Its ultimate goal must be to reinforce the government and strengthen the country.
The national debt surfaced after the revolution when the United States government had to borrow funds from the French government and from the Dutch bankers. By 1790, the U.S. government accumulated millions in debt, but no one knew precisely how much. The Constitution mandated that the new government take over the debts of the old government under the Articles of Confederation.
As of today America’s national debt is 18 trillion dollars and approximately 5 trillion of that is held by foreign countries including China and Japan. In the last few years we seem to hear more about balancing the country’s budget and politicians raising the debt ceiling so we can pay on this debt. How have we gotten into such an overwhelming and complicated problem with our nation’s money? Ironically the same can be said for our individual household debt as well as making the same mistakes and trying to find creative ways to be accountable to our financial responsibilities. Teaching the basics of personal finance n our schools can culturally change our financial practices, leading to a more financially literate public and a stronger, more stable, America. If the younger generations can become more financially savvy, then there is an opportunity for our nation as a whole to become less dependent on debt to survive.
The U.S budget deficit over the years has been a problem but lately the deficit has shrunk. However, what made the U.S budget deficit get to where it is today and what will it be like in the years to come. Throughout the past the U.S has operated under a deficit. This means that the U.S Spent more money than it was taking in. The cause of the excess in spending was different depending on which year. Some of the causes were war, increase in spending , and economic downturns. There were different acts passed to try and control the deficit problem. The deficit at the present time is declining. This decline is due to the improving economy, sequester, and a tax increase on high-income households. The big factor that went into the decline in the deficit for 2013 was the payment that Fannie Mae and Freddie Mac made. The deficit decline in the present time may make some think the U.S could get out of debt but it has been projected that the U.S deficit will start to increase once again.
“The Budget and Economic Outlook : Fiscal Years 2010 to 2020.” Congress of the United States
...ecause by increasing the minimum wage, you also increase the chance of consumer spending. With a higher minimum wage and people able to support and pay living expenses, they have more income to spend elsewhere. People tend to spend more if they have the money to do so, which contributes to the GDP, which helps kick start the economic recovery.
In conclusion, the idea of globalisation, the process where companies develop themselves internationally is one of the current issues of our generation. Globalisation has been caused because of many factors, such as reduced protection, the reduction of tariffs and quotas and new developments in information and transportation technology. Consequently these factors that cause the globalisation of Australian businesses also result in many costs and benefits. The key costs and benefits are free trade, the result of removing trade barriers and the environmental costs that are caused by pollution from factories. Overall, a positive outcome will arise if the globalisation of Australian business continues.
Australia has had one of the most outstanding economies of the world in recent years - competitive, open and vibrant. The nation’s high economic performance stems from effective economic management and ongoing structural reform. Australia has a competitive and dynamic private sector and a skilled, flexible workforce. It also has a comprehensive economic policy framework in place. The economy is globally competitive and remains an attractive destination for investment. Australia has a sound, stable and modern institutional structure that provides certainty to businesses. For long time, Australia is a stable democratic country with strong growth, low inflation and low interest rate.(Ning)
Everyone has their own political leaning and that leaning comes from one’s opinion about the Government. Peoples’ opinions are formed by what the parties say they will and will not do, the amounts they want spend and what they want to save. In macroeconomic terms, what the government spends is known as fiscal policy. Fiscal policy is the use of taxation and government spending for the purposes of stimulating or slowing down growth in an economy. Fiscal policy can be used for expansionary reasons, which is aimed at growing the economy and increasing employment, or contractionary which is intended to slow the growth of an economy. Expansionary fiscal policy features increased government spending and decreases in the tax rates as where contractionary policy focuses on lowering government spending and increasing tax rates. It must be understood that fiscal policy is meant to help the economy, although some negative results may arise.
Many areas could be affected by a change in minimum wage, but potentially the most drastic change would be to unemployment. Advocates of a higher minimum wage insist that a raise would significantly decrease the unemployment rate in the United States and improve the quality of living. However, there are conflicting opinions on this. Higher minimum wage would mean higher labor costs for business owners, thus making it more difficult for employers to maintain the amount of workers they have, let alone add new employees. Raising the minimum wage does not increase the value of the worker's labor; it increases the cost of the worker's labor. As a general rule the more something costs, the less of it people will buy. This is true of not only consumer goods but also of workers in the labor market.Many jobs come from large corporations but they also come from small businesses.There are 23 million small businesses in America, accounting for 54% of sales and 55% of jobs. Raising the minimum wage means that all of these corporations and businesses will have to dig deeper in...