MEDIA RELEASE: Fast-track action needed on company tax - The Centre for Independent Studies
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MEDIA RELEASE: Fast-track action needed on company tax

cis logo 640x360Introduction of legislation to reduce company tax is welcome but long overdue; it’s an urgent reform that needs agreement from all sides of politics, according to Centre for Independent Studies economist Michael Potter.

“Australia is crying out for this reform. Wages growth is weak, national income has been falling for several years, and productivity growth needs a substantial boost,” Mr Potter said.

“Even more troubling is our investment levels which are at near-record lows: the only other time we have seen non-mining investment this low is in the depths of the 1990 recession. And mining investment is declining sharply.

“The company tax cut is a much-needed response to these problems. Our company tax rate and revenue are uncompetitively high, and we are turning off investment as a result.

“As a result, we are foregoing substantial boosts to wages, exports, GDP, national income and employment, as argued in detailed Treasury analysis of the tax cut.

“Australia would be much better off with this reform, and it should be passed as a priority by the Parliament,” Mr Potter said.

Michael Potter is a Research Fellow in the Economics Program at the Centre for Independent Studies and author of the report The case against tax increases in Australia: the growing burden