Changing a policy that never made sense

A couple of comments on Labor's proposed policy change on tax credits being able to be converted to cash for people who never paid tax anyway:

1.   How did the policy ever make any sense anyway???    It really doesn't make sense as a tax policy.   As John Kehoe writes (with my bold):

My self-funded retiree father complained during a phone conversation this week about Labor's "tax grab" on refundable dividend imputation credits.

I shot back asking why asset-rich retirees should get away with paying negative tax rates for owning shares, when younger workers like me front up at the office each day and lose 30-50 per cent in tax?

2.   Is this why it hasn't (as far as I know) yet been condemned by any of the economists who hang around the IPA and Catallaxy?

3.  It is pretty hilarious some of the examples appearing in the Murdoch press as to how it will affect people:

Update:   Davidson and the IPA were slow off the mark, but of course as the policy leaves more money in the hands of government,  they are against it.  Got to strangle tax so as to be able strangle size of government, after all.   I think there will be other economists willing to put the boot into the way Sinclair tries to spin this:

Labor’s problem is that they are being too clever by half. They want to increase taxes without clearly saying so. That is profoundly dishonest. Receiving a tax refund is not welfare. In the same way receiving your change from the supermarket isn’t corporate charity – it is a return of your own money. Millions of Australians overpay their tax liabilities each and every year and receive a refund from the government. Labor proposes to stop paying refunds to older Australians – both now and in the future....