If you think you’re having trouble coping with the rising cost of living now, just wait until you see what the politicians have in store for you over the next three years. In all likelihood, you’ll be losing a significantly higher proportion of your pay in income tax, though people on low incomes will be hit a lot harder than those on high incomes.

This will happen because an increase in the overall tax we pay is inevitable, but it suits both sides of politics to avoid the obvious, up-front increase that would come from raising the rate of the goods and services tax (or from extending the tax to spending on fresh food, education and healthcare) and rely on what Malcolm Fraser called ‘‘the hidden tax of inflation’’ – otherwise known as bracket creep.

Joe Hockey has been softening us up for the tough budget he’s preparing for next month. Credit:Andrew Meares

The pollies know voters much prefer any increase in taxation to be hidden from their view. Trouble is, the increase in ‘‘marginal’’ tax rates (the tax on the last part of your income, such as on a pay rise or some overtime) many workers face will be so big, you’d have to be pretty thick not to notice.

Treasurer Joe Hockey has been softening us up for the tough budget he’s preparing for next month. Fine by me. But he’s studiously avoiding admitting there’s no way his spending cuts will get the budget back into lasting balance. He’s pretending all the problem is on the spending side (and all caused by Labor), when he knows the problem on the budget’s revenue side is just as big, if not worse.