Media Release NSWVIC

Polling shows Americans and Australians united in opposition to cutting company tax

ReachTEL polling released today by The Australia Institute, asked voters in three blue-ribbon Liberal electorates about cutting the company tax rate.

The poll comes as proponents of the cuts site the progress of deeply unpopular Republican tax plans as a reason for Australia to follow suit.

The GOP tax plan has been widely repudiated by economists in the US and around the world.

A total of 2,649 voters in the electorates of Wentworth, Warringa and Kooyong were asked on 19 October whether the tax rate for large business should be decreased, increased or stay the same.

The three blue-ribbon Liberal electorates rank 1st (Wentworth), 2nd (Warringah) and 7th out of 150 Federal electorates for the highest average incomes.

61.5% of residents of the Prime Minister’s electorate of Wentworth think the company tax rate should be increased (21.7%) or kept the same (39.8%). Just 30.6% support the government policy.

Question: Now thinking about tax policy. The company tax rate for large business is currently 30%. Do you think this rate should be decreased, increased or stay the same?

Wentworth n=859

Total

Female

Male

18-34

35-50

51-65

65+

Decreased

30.6%

29.3%

32.1%

38.0%

27.1%

26.8%

30.0%

Increased

21.7%

25.6%

17.5%

26.9%

21.8%

19.7%

16.5%

Stay the same

39.8%

36.7%

43.1%

21.9%

46.2%

49.2%

45.3%

Don’t Know / Unsure

7.9%

8.4%

7.4%

13.2%

5.0%

4.4%

8.2%

“Australians and Americans are of one mind in their opposition to cutting taxes for corporations,” Executive Director of The Australia Institute, Ben Oquist said.

“The economic case for a company tax cut in Australia has not been made.

“The huge revenue loss from a large company tax cut will mean less spending on alternative economy-stimulating activities like infrastructure and education.

“Any economic analysis that does not do a comparison of alternative spending measures is flawed.

“Inequality is the economic issue of our time. It slows economic growth, harms our social cohesion and poses a threat to our very democracy.

“Meanwhile the economic case for company tax cuts has collapsed.

“The US, like Australia, continues to suffer historically low wage growth and growing inequality. Meanwhile corporate profits are at record highs. Giving companies a tax handout will only exacerbate the inequality crisis,” Oquist said.

Q: Now thinking about tax policy. The company tax rate for large business is currently 30%. Do you think this rate should be decreased, increased or stay the same?

Wentworth

Warringah

Kooyong

Total

n=

859

879

911

2649

Decreased

31%

31%

27%

29%

Increased

22%

19%

22%

21%

Stay the same

40%

43%

46%

43%

Don’t Know / Unsure

8%

6%

6%

7%

Related research

Media Enquiries

Anna Chang Communications Director

0422 775 161

anna@tai.org.au