The Turnbull Government is facing a fight to clear any tax cuts through the Senate, with the Greens vowing to oppose any attempt to either lower personal or company tax rates. From The Guardian:
The Greens have ruled out supporting personal income tax cuts, with costings showing tax cuts addressing bracket creep could cost $17.6bn over 10 years.
It comes one day after the Greens ruled out supporting corporate tax cuts…
The Greens’ Treasury spokesman, Adam Bandt, said his party would not support income tax cuts in the upcoming budget, which should reduce inequality and secure the country’s revenue base…
“Instead of frittering away billions of dollars on $5 a week tax cuts for above average income earners, we should use that money for schools, hospitals and infrastructure…
He announced the Greens would [also] not support corporate tax cuts.
“If the Liberals believe the response to companies not paying enough tax is to give them a tax cut, if they want to get that through parliament, they’re going to need the Labor party support for it,” he said.
The States, too, have vowed to block any move to lower company taxes it means cuts to health and education funding. Also from The Guardian:
The South Australian premier, Jay Weatherill, has warned Malcolm Turnbull he will face a “fierce campaign” from the states during the looming federal election if he offers tax cuts to companies and does not reverse Abbott government funding cuts to hospitals and schools…
Weatherill told Guardian Australia that “if the commonwealth is to pursue cuts to company tax when we think the first call on the nation’s resources should be health and education funding, then they should expect a fierce campaign to be run against them during the federal election.”
“The Abbott government cuts amount to around $20bn over the forward estimates. We are talking about some substantial proportion of that.”
Really, the Coalition should only look to cut taxes if it can fund them via closing tax shelters like superannuation, negative gearing, and the capital gains tax discount, thus effectively lowering the rate of tax and broadening the base.
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