Will Budget tax cuts fuel inflation?Â (click here for the MP3 file)
PM — Wednesday, 9 May , 2007Â 18:14:52
Reporter: Stephen Long
MARK COLVIN: Now, will the tax cuts in the Budget cause inflation?
Some leading economists argue that the Reserve Bank could be forced to lift interest rates down the track because Government spending and tax cuts will increase consumption and prices.
But others disagree. They argue that debt levels are so high that many people will be handing their tax cuts straight to the bank.