THE Federal Government is preparing to announce tax cuts for low-income earners as part of a stimulus package to help the rapidly deteriorating economy.Swan has begun to peddle this as the recession we had to have. So why are they trying to bail everyone out?
Senior government sources say the targeted tax relief will be part of a mixed package of big infrastructure and "nation-building" spending, as well as strategic, but direct, short-term cash injections into the economy.
AM thismorning, not posted yet but should be after about 9:30am Qld time. (I'll put up more info if I have time when it's posted.)
Updated Monday, 2 February, 2009
British worker fury over foreign labour
In 2007 British Prime Minister Gordon Brown said the Government would concentrate on British jobs for British workers. As the recession deepens these words are being thrown back at him. At one oil refinery workers staged a wildcat strike over a contract awarded to a foreign company using Italian and Portuguese employees.
Trade ministers worried about increasing protectionism
The US and the EU have intervened to try to stop foreign companies taking market share from local producers. Trade ministers meeting over the weekend at the World Economic Forum have urged countries to resist pressure to introduce protectionism as a form of insulation against the financial downturn.
IMF endorses deficit for Australian budget
A senior official from the International Monetary Fund says a cut of one percentage point by Australia's Reserve Bank board would be appropriate, given the dramatic slowing of economic growth. The IMF also says the economic challenges facing Australia virtually demand the Rudd Government push the federal budget into deficit.
Swan says deficit inevitable
The Federal Treasurer Wayne Swan says the budget will go into a temporary deficit and he points to shrinking company tax receipts as a significant reason. He says the Government is committed to returning the budget to surplus. And he's warned against a return to protectionist policies saying they would worsen the global recession.
Super Bowl advertising breaks records
Despite the economic downturn and the collapse of corporate giants, today's American Superbowl has set a new record for advertising spending with many companies ploughing millions of dollars into short but prime time advertising spots.
Call for state intervention for obese youngsters
A child obesity specialist says some children are so overweight, that child protection authorities should become involved. She says there have been cases of childhood obesity which have led to death.
Iraqi elections prove test for democratic transition
The provincial elections held in Iraq last weekend saw the turnout of more than seven million voters and polling day was relatively free of violence. One Iraqi exile who has set up a think-tank specialising in Iraqi politics, speaks to AM about the significance of the ballot for Iraq's progress towards democracy. He says the election result will determine whether there's an upsurge in violence.
Japanese sumo star busted for drugs
For the first time, a Japanese wrestler has been kicked out of the national sport for possessing 16 grams of cannabis. The case is dominating the headlines and there's little public sympathy for the sumo wrestler who's accused of tarnishing the ancient sport.
Tireless Nadal claims victory over Federer
Rafael Nadal has won his first Australian Open Men's tennis championship in a five set thriller over Roger Federer. His victory prevented Federer from equalling Pete Sampras' all time record of 14 Grand Slam titles.