The distributional effects of the tax cuts
All the econobloggers have been waiting for someone else to dive into the analysis of the tax policies offered by the government and opposition. Finally, Andrew Leigh has got sick of waiting and produced a distributional analysis. Bottom line: as you would expect, only marginal differences, except at the top percentile of the income distribution. Labor’s education credit makes its policy very slightly more egalitarian.
I’ve been meaning to work through the MYEFO and talk about the fiscal soundness or otherwise of tax cuts on this scale, and I’ll try to get to this next week.