Rudd won't be pressured on tax policy
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Federal Opposition Leader Kevin Rudd says he will not be rushed into releasing his tax policy.
The Government today unveiled its first major campaign pledge, $34 billion in tax cuts over three years.
Labor is now under pressure to release its own tax plans, but Kevin Rudd has told the 7:30 Report he is taking a cautious and considered approach.
"However Mr Howard and Mr Costello want to run around and characterise the politics of that, and the sky will fall in if we don't produce a tax policy by Wednesday lunchtime, that's a matter for them," he said.
"We will do it correctly and in a sober fashion and in a conservative fashion because public finance is fundamentally important.
"Mr Costello today admitted that for months they've been working on this with the full support of the Treasury and out they plonk the official fiscal outlook today and release their tax policy within 30 seconds of doing so.
"A cautious and considered approach means that we will do this in our own season and we will do that."
Opposition treasury spokesman Wayne Swan says Labor will not be outlining its tax plan until he has had time to assess the Coalition's tax proposal.
Mr Swan says Labor will make a responsible judgement on tax cuts before the election.
"The only responsible course of action here is to study the detail. We've said we'll put out all our policies well before the election and we'll do that," he said.
"But in terms of what the Government's put forward, we will take our time to study the detail. That's the only responsible and reasonable thing to do."
'New ideas'
Prime Minister John Howard says his multi-billion-dollar tax plan proves the Coalition has not run out of new ideas.
Mr Rudd has been arguing the Coalition is tired and stale after 11 years in office, but Mr Howard has told SBS that today's tax announcement proves that is not the case.
"I've demonstrated today that I've still got new ideas," he said.
"Now what Mr Rudd has said is that my Government has run out of fresh ideas, it's become stale. We have produced a major restructuring of the personal income tax system today. The charge that we have run out of ideas has never been true."
But Mr Howard slipped up on a key economic figure today, telling Channel Nine the official interest rate was 6.25 rather than 6.5 per cent.
With the election campaign just beginning, Australian Prime Minister John Howard has promised AU$34 billion in personal income tax cuts over the next three years.  That is on top of $31.5 billion announced in May, and $36.7 billion announced in 2006.

The new tax cuts are based on new projections for growth in the Australian economy.  The Treasury estimates that the economy will expand by 4.25% in the 12 months to June 2008, up from growth of 3.75% predicted in May.

The Government has challenged the Labor opposition to announce their tax policy immediately. 

"The biggest, boldest tax plan that we've seen in a long time is presented yesterday, it deals with participation, competitiveness, building capacity in the Australian economy, and what does Kevin Rudd say? Nothing," treasurer Peter Costello said. "He better have an answer today."

Costello described the government tax policy as "very responsible" and said Rudd was a "Nothing Man" because he has not revealed Labor's tax policy.

The Shadow Treasurer, Wayne Swan, replied "The only responsible course of action here is to study the detail. We've said we'll put out all our policies well before the election and we'll do that".

"But in terms of what the Government's put forward, we will take our time to study the detail. That's the only responsible and reasonable thing to do."

Economists from Access Economics, the ANZ Bank, HSBC and Macquarie Bank noted that the tax cuts will boost demand at a time when the Reserve Bank is trying to slow the economy.  The Reserve Bank has been raising interest rates to keep the inflation rate within its target range.  Households with substantial mortgages could end up worse off.

Rudd has said the Opposition will reveal its tax policy in its own time - mimicking John Howard's approach when he was Opposition Leader in 1996.