An article published by Michael Potter, entitled ‘Big Business is Bad’, discusses the many misconceptions surrounding corporate taxes in Australia. Potter explains that big businesses in Australia do not benefit as much as people, certainly left-wingers, think they do from the variety of tax ‘benefits’ to which they are subjected. The article goes through three main reasons for this: plummeting levels of business investments across the board, the harmful effect of corporate taxes on businesses with more market power and the effect of imputation which drastically reduces the benefits of tax cuts in Australia for these businesses.
Michael Potter begins:
“A standard refrain of the left is ‘big business is bad’. It pops up in many guises, and the latest is in a claim that corporate tax cuts will disproportionately benefit Australia’s largest companies. We are told the largest 15 Australian businesses will supposedly receive one third of the ‘benefit’ of a tax cut, and these top companies are unlikely to increase investment in response, particularly because these businesses are oligopolies with significant market power….”
Read the whole article here for a more information on why big business is not bad for Australia.
Marija Polic is a Research Associate at the Australian Taxpayers' Alliance