As I said, I'm no economist so there may be a very good reason why this wouldn't work but I have a suggestion to make to Prime Minister Rudd and Treasurer Swan...

Why not cut petrol excise/tax instead of giving income tax cuts?

Everyone keeps saying how income tax cuts are inflationary; they also tell us that inflation is being fuelled (forgive the pun) by petrol prices which result in increased food prices, increased travel costs etc., etc. So why not cut the taxes on petrol instead of on income? That will make everyone's money go further without resulting in higher prices which will push up inflation. And if inflation is held in check then interest rates won't need to be increased.

Is there a good reason why this wouldn't work?

I'm really interested to know if there is a reason this can't be done or if someone thinks there is a reason why it wouldn't work. I maybe naive but I can't think of one.