It has already been extensively agreed that lower company taxes will:
- create more jobs and higher wages
- support and create more Australian businesses
- increase overall economic growth and living standards
Despite the increasing evidence for a tax cut on companies, our political classes are stuck on the idea that it will give “too many benefits to foreigners.”
As Michael Potter wrote on Business Insider,
“Everyone agreed the tax cut would provide a short-term benefit to foreign investors. But the Coalition and business groups presented this as a strong argument in favour of the tax cut, while the ALP and left-leaning lobby groups said it was an argument against the tax cut. The worst analysis opposing the tax cut basically assumed that any money going to a foreigner was bad, even if Australians benefited in net terms.
The absurd argument was that Australia should forego an increase in wages, investment, incomes, employment and economic growth just because some foreigners might receive a benefit.”
He asks some hard hitting questions, debunking the idea that we should ignore company tax cuts simply because foreigners also benefit.
Regardless of which foreigners benefit, the broader point remains: why should a policy providing substantial benefits to Australia be dismissed because the benefit goes partly to Australians and partly to foreigners?
If we oppose policies because they benefit foreigners, why do we implement any policy that benefits any foreigner? For example, why do we provide foreign aid, particularly if there are problems with this aid?
Reducing company taxes benefits Australians and foreigners. It is simply good evidence based policy that is long overdue.