I agree that we need to be well placed for future economic challenges.  

I also agree that we do need to reduce our deficit and a move to surplus would be ultimately beneficial for our economy. 

I also agree that we must spend within our means, but I absolutely challenge the methods of the Abbott government and the ongoing rhetoric about a so-called ‘budget emergency”. 

First thing is that we have an economy of about $1.7 trillion with debt at something like $300 billion. Debt as a percentage of GDP is approximately 21 per cent. 

Yes, less debt would be better, but this hardly equates to an emergency. 

I work in the financial services sector and I can assure readers that we have international fund managers knocking on the door to buy Australian government bonds. 

This is an indication of a robust economy, but the strength of our economy is indeed threatened buy draconian spending cuts. 

We do not have an expenditure problem. We have a revenue problem. 

This goes back to the days of the Howard government when mining revenue was incredibly strong.  

The then treasurer, Peter Costello, did a good thing in setting up the Future Fund (this was critical during the global financial crisis as it assisted Wayne Swan in stimulating spending), but the bad thing Mr Costello did was to introduce tax cuts to all and sundry. 

Yes, a good re-election strategy, but a poor one for long-term economic growth. 

So what is the solution? 

The solution, Mr Hockey, is to be brave. Mr Abbott, be a leader. Let’s begin by reviewing all fossil fuel subsidies (fossil fuel will one day be a thing of the past), increase company tax, review the Medicare Levy on higher income earners, review negative gearing tax breaks, review some components of the GST and review tax breaks on superannuation for higher income earners. 

Mr Abbott, abolish the paid parental leave policy. 

I am sure there are other areas that could be included, but I just wanted to name a few. 

Again, our major problem is revenue, not debt. 

For what it is worth, I run a company, I am a higher income earner and I take full advantage of the generous superannuation system by making contributions to the maximum limit.  

Therefore, I would feel some pain, but I should as I can afford to do so.  

How did I fare after the May budget? Extremely well as I was not asked to contribute more and I should have been. 

I really feel for those on lower incomes and for those who have a genuine reliance on our social security system. 

We need courageous leadership with a vision for the future.

What's your opinion?

Do you have some thoughts on this issue? Click here to send a letter to the editor.

Preference is given to letters of no more than 350 words.