The Australian Institute (TAI) has begun a new project named “Revenue Watch”, which will be repeated for every big business financial report that is released during reporting season and aims to pressure the Turnbull Government over its plan to cut company taxes from 30% to 25%.
TAI’s first report under this project, which examines Rio Tinto’s latest results, found company tax cuts would be worth $7.67 billion in lost revenue over first decade of the policy. From News.com.au:
“The company tax cuts are economically unsound and will result in less revenue being available for community services and productivity enhancing public infrastructure,” Australia Institute executive director Ben Oquist said today.
He said: “Our research has consistently shown there is no correlation between lower company tax rates, employment, or economic growth.
“The community are looking for good service delivery and the revenue to fund it, not a tax cut giveaway to companies like Rio Tinto”…
The Australia Institute today said the foregone revenue would be the equivalent of employing 8450 nurses, 7610 secondary school teachers or 6310 police.
It said this was based on the average payments for the occupations in May 2016 and updating for the actual and projected wage increases.
This is very clever politicking by TAI and is sure to cut through with voters and the Senate cross-bench.
