Some of the nation's leading academics, businesspeople and public figures have come together to voice their opposition to tax cuts in an open letter to Malcolm Turnbull.
The Australia Institute has been working to make tax reform fair ahead of the federal budget and as we head to the election.
Our research shows:
- One third of the benefit of cutting company tax would go to just 15 companies
Tax concessions overwhelmingly benefit older and wealthier Australians
There is no correlation between corporate tax rates and economic growth in OECD countries
The Australia Institute's research is helping to reframe the economic debate from 'the debt crisis' to tackle the real issue: Australia's revenue problem.
Can you donate below to help fund our research in this area? Your donation will help us make sure the economic debate is about more than just tax cuts.
To Prime Minister Malcolm Turnbull,
Data from the OECD, IMF and World Bank make clear that Australia is a low taxing country. To have world class health, education and transport services we need to collect the revenue to fund them.
A debate about tax reform should begin with the question of how much tax is required to fund the services we need to build a fair and decent society in Australia.
And real tax reform also requires fairness. A serious tax reform package designed to be ‘fair’ should address as a priority the current generous tax concessions to the top end of town, inequitable distribution of superannuation tax concessions and the capital gains tax discount, not how to give big business large company tax cuts at the expense of services that everyday Australians rely on. Cutting programs which support needy Australians to give more tax benefits to companies or large income tax cuts to the wealthiest is not fair.
The OECD says inequality harms growth. While inequality will always be in the community, what matters is its extent, its direction, and its causes. What’s more, increasing inequality hurts the economy and divides the community.
The pursuit of equity and fairness must lie at the heart of our national goals. Fortunately, not only is the pursuit of equity broadly supported by the community, it is good for our economy as a whole. Collecting more tax, more equitably, will make Australia a better place to live and work.
We urge the Prime Minister and all political leaders not to cut taxes at this time — and certainly not for companies.
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