Sunday, March 18, 2018

Company Tax Cuts: The Facts

'You may have seen in the paper that Business Council of Australia CEO Jennifer Westacott sent a direct plea for big business company tax cuts to all senators.
 
As you know, we at The Australia Institute have been continually promoting our company tax research and providing briefings in Parliament on this government proposal for a long time. But in order to leave no stone unturned, I recorded my own message to Senators, setting straight the facts that a company tax cut for big business does not stack up.






The company tax cuts bill is listed for the Senate this Wednesday, and we need you to tell your Senators that a company tax cut just doesn't add up. You can find a list of your state/territory Senators here.

The economic case for company tax cuts has collapsed. Australia Institute research shows:

+ There’s better ways to create jobs and help the economy. 

There are far more cost effective ways to create jobs and help the economy. Studies show that investing in schools and education is more likely to help the economy than giving businesses a company tax cut.


The big four banks get an extra $7.4 billion dollars. Seriously.

Australia’s big four banks are some of the most profitable banks in the world and are the big winners here, getting an extra $7.4 billion dollars in the first 10 years of the tax cuts when they’re already making record profits. By the 2025–26 financial year, the tax cuts for the big four banks will be $3.2 billion each year.


+ The big winners are tax avoiders and foreign shareholders.

The big winners from the company tax cut are tax avoiders and foreign shareholders. The benefits of the company tax cut mostly go to foreign shareholders, not to Australian shareholders due to Australia’s dividend imputation system.'

- Ben Oquist

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