Waiting for the trickle down effect
Concluding the Senate debate on company tax changes which will allow a tax break to corporations with a turnover up to $50 million per annum, Senator Mathias Cormann, the Minister for Finance, told the Senate on 30 March 2017:
Letting businesses keep a little bit more of their money to reinvest in their future success will help them hire more Australians and pay them better wages over time. That is what this reform is all about.'
More jobs and better wages, especially for the lowest paid, would be welcome outcomes, given that there are 714,000 Australians presently unable to find suitable work and a further 1 million Australians looking to increase their hours of work in order to improve their family lot.
Unfortunately the Treasurer, Scott Morrison, is not able to share with us any economic modelling to demonstrate how this round of corporate tax cuts will assist. He has urged that we use 'the pub test'.
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