Fed: Libs love to lower taxes, when it's achievable - Costello

AAP General News (Australia)
08-30-2005
Fed: Libs love to lower taxes, when it's achievable - Costello

CANBERRA, Aug 30 AAP - Treasurer Peter Costello says asking a Liberal whether he would
like to lower tax rates is the same as asking a farmer if he would like rain.

But the veteran of nine federal budgets believes lowering tax rates was so difficult
last time it might not be politically achievable.

After days of commentary on lowering the top rate by Prime Minister John Howard, prominent
Liberal MP Malcolm Turnbull and Labor frontbencher Lindsay Tanner, Mr Costello said he
favoured lowering the highest rate, but only together with other tax rates.

"Asking a Liberal whether he'd like lower tax rates, is like asking a farmer whether
he'd like rain," Mr Costello told the ABC's 7.30 Report.

"I'd love to see it lower but I wouldn't just restrict myself to the top rate, by the way.

"I'd say, on all rates, of course we'd like to see all rates as low as is consistent
with good budget policy, low interest rates and decent expenditures."

Mr Costello said it had become a political question.

"All of this is just a question of what is achievable, what can you do," he said.

"It was hard enough to get the threshold increase (this year) without trying to do
more ambitious things in the last parliament."

Deputy Prime Minister and Nationals leader Mark Vaile has warned the Liberal Party
against pushing for tax cuts just for the nation's rich, saying money had to be sunk into
country infrastructure and the environment.

AAP dep/it/sd

KEYWORD: TAX DAYLEAD

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