I have been thinking some more about Australia’s fiscal position and the oppressive tax take of the Howard Government especially when the tax to GDP ratio hit an all time high of 24.1% in 2004-05 and 2005-06.
This follows earlier posts on the subject (see below).
Looking at the issue another way – let’s assume that for every year of the Howard Government, its tax to GDP take was same as the tax revenue received by the Gillard Government in 2010-11 (20.2%).
If this was the case, the Howard Government would never once in 12 Budgets delivered a Budget surplus.
Again, it just goes to show what you can achieve if you are a high taxing government.