What about a corporate tax cut?

There is much talk of melt downs in global financial markets. The US government is busy handing out money to some of the key failures. And Malcolm Turnbull says he would like to work with Kevin Rudd on a bipartisan solution to the turmoil. So long as governments are going to take decisive measures to deal with these problems may I suggest they take a look at the option of corporate tax cuts. This would reduce the financial burden on businesses to help them offset difficulties perhaps created by counter parties going broke. It would also reward success rather than failure and unlike other measures it would create no moral hazard. What have all those budget surpluses been for if not to provide some flexibility in “difficult times” such as these?

6 thoughts on “What about a corporate tax cut?

  1. Have you ever actually looked at the Australian budget. The tax take from the corporate sector is lower than the personal income tax take.

    How about bringing the highest personal tax bracket into line with the corporate tax rate first.

    Given that the US has pretty mush proved the under taxing and over spending is a sure way to destroy an economy I just find stuff like this incredible.

    Decide what services the government isn’t going to provide before you start wanking on about tax cuts.

  2. Decide what services the government isn’t going to provide before you start wanking on about tax cuts.

    Sure charles. The first service I don’t think they should provide is the bailout service.

    Have you ever actually looked at the Australian budget.

    Yes. Have you?

  3. Howard cut the corporate rate and seemed to be uneffected in voting terms at the time. Hawke and Keating also cut the rate and sailed on regardless. It may not win you any votes however I doubt it would cost you many especially if it was sold as part of a necessary economic stabilisation package.

  4. If we were to cut corp tax we would first need to cut corp subsidy!
    The tangled web of these subs would take the govt a long time to sort out.
    Yhe tax paid by corps I’m pretty sure would not so easily be agreed to on this basis. company tax is avoided by smart lawyers and accountants to the benefit of directors in the form of bonus’s and shareholders.
    To help productivity there are surely better ways?
    fluff
    Inspired “lurker”

  5. Luff – why not cut corporate taxes and fund this with elimination of subsidies?

    charles, so what – if every sole trader and partnership incorporated, you could have a very different picture.

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