The University of Melbourne’s John Freebairn argues that reducing the tax rate for larger non-resident shareholders would stimulate economic growth and help to increase wages. From The Australian:
Mr Freebairn said lower tax rates for large corporations would provide a “stimulus to the investor”, which would see “GDP grow” and that “some of that goes to labour remuneration”.
“You clearly get a positive effect on GDP. That’s mostly going to happen with large companies that have non-resident shareholdings. That suggests labour productivity will go up and some of that will go to higher wages,” he said.
