Tax Cuts Fail to Boost Investment, Harm Aussies: Report
It’s an argument mounted by some of the most profitable companies in the country whenever the opportunity arises.
But new analysis from The Australia Institute lists ten reasons why cutting company tax would not achieve its goal of increasing investment and would only hurt ordinary Australians.
“If you cut the company tax rate from 30% to 25% the big winners would be the big banks, mining companies, and companies in highly uncompetitive industries, like Telstra, Woolies and Coles,” said Jack Thrower, Senior Economist at The Australia Institute.
“The main argument for company tax cuts is that they supposedly boost investment, which ‘trickles down’ to ordinary Australians.
“There is little evidence that corporate tax cuts really would increase investment and even less evidence that any perceived benefit would trickle down to anyone other than shareholders overseas.
“The investment Australia needs most is government investment in public infrastructure, like hospitals, schools, public transport, roads, and so much more. That kind of investment needs the very same tax dollars that a company tax cut would take away.
“Even the Commonwealth Bank, which would benefit massively from a company tax cut, says it should not be a priority.”
https://australiainstitute.org.au/post/company-tax-cuts-would-do-little-to-boost-investment-and-hurt-everyday-australians-new-analysis/