The company tax cuts represents a choice. $65 billion dollars to business means billions less investment in community services, nation-building infrastructure, R&D or jobs training.
What we know is that the Government has had to put this legislation on hold when they could not find enough support to pass the legislation in the Senate.
The Senate is our Parliament’s ‘house of review’, and upon review Senators from the Labor Party, the Australian Greens, Senator Tim Storer, and Centre Alliance (formerly NXT) Senators Rex Patrick and Stirling Griff, came to the conclusion that the economics of the proposed company tax cut for big business just doesn’t stack up.
This should come as no surprise, Australia Institute research shows that the economic case for the company tax cuts has collapsed.
What is a surprise, is that it seems the rest of Australia have South Australians to thank for safeguarding our revenue base from the largest attempted raid we’ve seen for a while.
Why? Consider this:
Senator Penny Wong, Senate Opposition Leader
Senator for South Australia
In fact, our research shows there is no correlation between lower company tax rates, employment, or economic growth. Common sense shows this, and historical and international data confirm it.
Senator Sarah Hanson-Young, Greens Spokesperson for Finance and Trade
Another Senator for South Australia
Our research shows the big winners of the company tax cut are tax avoiders and foreign shareholders. Australian shareholders don’t even benefit, due to Australia’s dividend imputation system.
Senator Rex Patrick and Senator Stirling Griff, Centre Alliance Senators (formerly NXT)
Two more Senators for South Australia
Australia Institute research shows foreign investment isn’t dependent on company tax rate: companies do business in Australia because they want to do business in Australia. In fact, most of Australia’s foreign investment comes from countries with lower tax rates.
Senator Tim Storer, Independent Senator
Yep, you guessed it, Senator for South Australia
Giving business a $65 billion tax cut means billions of dollars less for schools, hospitals and other services. Our research shows there’s more cost effective ways to create jobs & help the economy; studies show that investing in schools and education is more likely to help the economy than giving business a company tax cut.
Thanks to you, South Australia
So next time you’re about to have a dig at your mates from Adelaide, maybe you should think twice and thank them for having Senators who have become the bulwark against one of the biggest attempted Australian revenue giveaways to multinational corporations we’ve seen.
And if you’re not convinced, come to our public forum in Adelaide to discuss the economics of the proposed company tax cut with policy experts.
Public Forum: How Would You Spend $65 Billion?
A public forum to discuss the economics of the proposed company tax cut, with Ben Oquist, Executive Director of The Australia Institute, Dr Janine Dixon, Senior Research Fellow, Centre of Policy Studies (CoPS) at Victoria University, and Ross Womersley, CEO of SACOSS.
6.30pm, Tuesday 24 April
The Wheatsheaf Hotel
FREE, but bookings essential.
Not in Adelaide? Take a look at the Australia Institute’s research on why the economic case for company tax cuts has collapsed.
Tanya Martin Office Manager
Jake Wishart Senior Media Adviser