The company tax cuts proposed by the Turnbull government would enable businesses to increase wages as well as increase jobs.
But it seems that there are still those in the senate that are unable to see the benefits of a company tax cut.
The Turnbull government’s company tax plans have taken a hit, with the coalition unable to pass the bill in the Senate.
The company tax cut would be for those businesses who make a revenue of $50 million or more.
Although this is a setback for the Turnbull government, they are determined to pass the bill through the senate eventually.
As reported by the ABC, Finance Minister Mathias Cormann stated:
‘Despite our best efforts to secure majority support in the Senate for our proposed business tax cuts, we have not yet been able to secure the necessary support.’
To pass the bill, the coalition needed 39 votes. For the bill to be rejected, there were 38 votes needed.
At this point, the coalition are just four votes shy of passing the company tax cuts.
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More time the answer?
According to the ABC Senator Cormann believes his government need more time:
‘We need more time to make our arguments to our colleagues on the Senate crossbench.’
The good news for the Liberals is that they have the winter break to come up with an argument to convert the senators sitting on the fence.
A recent opinion poll in the seat of Longman, Queensland, pointed to 60% of voters for the company tax cuts.
Senator Cormann said: ‘More One Nation voters in Longman are supporting a lower, globally more competitive business tax rate than Liberal voters.’
While the coalition continues to fight for lower taxes, Labor leader Bill Shorten continues to fight against them, and Senator Cormann had strong words for voters in the upcoming by-election in Longman:
‘You have an opportunity to send Bill Shorten a message. If you do not support his plan for higher taxes that will make you worse off, vote for the Liberal candidate in Braddon and in Longman.’
In passing the tax cuts, the senate would be passing a bill that could benefit many Australians in the long run.
But a turn in events on Friday has seen speculation that shadow ministers from the Labor government held a meeting urging Shorten to reconsider his position on company tax cuts.
Many of his Labor colleagues are concerned that, should Labor continue to push for the repeal of the company tax cuts throughout the upcoming election campaign, it would damage their chances of receiving campaign donations from medium and big business.
With upcoming by-elections and a federal election to worry about next year, it seems that Labor will push to see that they are in a competitive position against the coalition government.
We’ll just have to wait and see what the senate will bring after the winter break.
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