The corporate tax cuts pushed through by Donald Trump had an immediate impact on the US’ economic outlook.
More businesses are repatriating profits to the US. And hundreds of companies announced pay rises and bonuses for their employees.
Yet many pollies remain opposed to cutting the corporate tax rate in Australia. Leaving Treasurer Scott Morrison to fight the battle alone.
Tax cuts for businesses will continue to drive job creation and growth, Morrison says, as he continues to defend the government’s company tax reduction plan.
He watched the next phase of the government’s enterprise tax plan pass the lower house on Thursday, but it’s expected to face opposition from Labor and the Greens in the Senate.
The government’s proposal would see the tax rate for all corporate entities drop to 27% in 2024–25 and eventually 25% by 2026–27.
The government has so far legislated a tax cut for businesses with turnovers of up to $50 million, leaving the remainder on a rate of 30%.
Mr Morrison admits the tax plan has its critics, but said keeping businesses taxes high was a ‘numpty idea’. He continued:
‘I cannot understand how keeping taxes high for these businesses helps them employ more Australians or boost their wages…
‘It just doesn’t make any sense.’
The Australian Tribune with AAP