Victoria University’s Janine Dixon and Jason Nassios have made the compelling case that cutting company taxes in the current environment is bad policy. Specifically, it would provide a windfall gain to foreign investors who have already invested in Australia at the current company tax rate. Hence it would shift a significant fiscal burden onto Australian taxpayers while also reducing national income:
They’re at it again, pushing lower company tax as a way to resuscitate the economy… The new argument is that they’ll help get us out of recession…
This recession is about households
When the time is right, it will be households that hold the key to reversing the effects of hibernation.
