Fairfax’s Matt Wade has called on the Turnbull Government to abandon its company tax cut package in favour of personal income tax cuts for the lower paid:
There is consensus the biggest threat to the Australian economy is low growth in wages, which shackles household demand, the engine of consumption – which brings about 60 per cent of GDP. Reserve Bank Governor Dr Philip Lowe is urging an increase in real wages, as is the government, the opposition, the vast majority of economists, and the union movement. The question is not whether wages should rise, but what is the best mechanism. The government says the best way is to cut company tax in the hope that will stimulate investment and employment, eventually leading to higher wages, and is having yet another attempt to get its $60-billion, 10-year corporate tax cut through the Senate…
