PUBLIC FINANCE · 30% TARGET ·
How to allocate savings: deficit first, tax cuts second
A simple financing rule preventing the Plan’s tax cuts from recreating the deficits the Constitution is designed to ban.
A funding order before any tax promise
1. Certified savingsOnly realised or sufficiently secured amounts count.
2. DeficitClose the ordinary structural deficit.
3. Transition and core functionsFund transition and priority state functions without new debt.
4. Tax cutsOnly durable residual room activates tax-cut steps.
Forbidden: permanent tax cuts based on hypothetical savings, one-off revenue or unobserved growth effects.
This rule also protects tax cuts
An unfunded tax cut is vulnerable to later reversal through new taxes, contributions or debt. A financing lock is designed to make reductions durable.