Cormann warns of tax hikes

By AAP

Senator Cormann says it is a "statement of fact" that tax hikes will be necessary without cuts to government spending, if Australia is ever to pay off its billions in debt. "We have laid out our plan to reduce the unsustainable spending growth trajectory Labor left behind," he told ABC Television on Sunday. "The only alternative to balance the books is to increase taxes.

Some within government were also calling for a rethink on the controversial budget measure. "This co-payment, I think is dangerous," Liberal backbencher Ian MacDonald told ABC Television. "Why don't we bite the bullet, have another look at it, make sure it is fair.

However, he refused to completely rule out taking such action, which he said would be the "worst-case scenario". "I have absolutely no desire at all to see research funding (cut)," Mr Pyne told the Ten Network. "I want to work with the crossbenchers to make sure that we all understand the high stakes that we are playing for.

Prime Minister Tony Abbott has warned of having to make "tougher decisions" if controversial measures such as the $7 GP co-payment, welfare reform and university deregulation are blocked by the Senate.

Read more here: Business Spectator

    

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