Opposition Leader Tony Abbott has been saying his proposed cut of the corporate tax rate — from 30% to 28.5% — will boost Australia’s growth.
According to The Australian though, a number of leading economists don’t agree.
Three of them told the newspaper Abbott’s paid parental leave levy will mean it won’t result in any real changes, as it cancels out the tax break.
“From my perspective, big corporations will still pay 30 per cent (28.5 plus 1.5) and so we would expect no decision changes,” said University of Melbourne economics professor John Freebairn, who was a member of the business tax working group last year.
University of Sydney professor of public economics Patricia Apps summed it up like this:
“A revenue-neutral reform can’t achieve the efficiency gains to promote economic growth.”
Read more here.
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