Do firms that pay less company tax create more jobs?

[Bunk Moreland]

This horrible, stench-packing policy is just typical of this pathetic excuse for a government.

 

[madmug]

This horrible, stench-packing policy is just typical of this pathetic excuse for a government.

Without doubt Turnbull & Libs ' superior economic managers' has been torn to shreds.

The Business council response to the $65bil handout just proves the point.

Business employs on the basis of making a profit from increasing production. Not on the basis of a tax handout. Tax concessions should be for productive improvements. Not to banks & off shore parties who have achieved SFA for the economy.

 

[Bunk Moreland]

Without doubt Turnbull & Libs ' superior economic managers' has been torn to shreds.

The Business council response to the $65bil handout just proves the point.

Business employs on the basis of making a profit from increasing production. Not on the basis of a tax handout. Tax concessions should be for productive improvements. Not to banks & off shore parties who have achieved SFA for the economy.

If you get a tax cut you either give it to shareholders or reinvest it back into price cuts.

Increase wages and shift it to another expense line... just... coz?

WTF?

 

[madmug]

If you get a tax cut you either give it to shareholders or reinvest it back into price cuts.

Increase wages and shift it to another expense line... just... coz?

WTF?

A lot of big firms in the US used it to buy back shares. Thus even further skewing the wealth distribution in the US.

We can't allow that to happen here. The larger the numbers of under employed, of low wage employees, of part time employees makes the society less able to consume & stimulate economic activity.

Upwardly skewing wealth distribution is detrimental to the health & welfare of the nation.

A fair days work for a fair days pay is an old but very apt saying.

 

[NSWCROW]

 

[TimmeT]

I'm sure she would know a bungle rather well. She's opening herself to criticism with such comments.

 

[Hawk Dork]

This horrible, stench-packing policy is just typical of this pathetic excuse for a government.

Planting economic time bombs is the only economic policy that unites the Libs,its all about dismantling medicare by stealth.
Nationals are just hillbillys who have no idea who they are supposed to be representing

 

[Power Raid]

Conclusion

Across a cross-section of profitable Australian firms, I find no evidence that those which pay a lower effective rate of tax create more jobs. In aggregate, the one-third of Australian companies whose effective corporate tax rate is below 25% shed jobs, while the two-thirds of firms with an effective corporate tax rate of 25% or above were net job creators. These results are robust to the inclusion of controls for firm size and industry fixed effects, as well as to expanding the sample to include unprofitable firms.

https://www.sciencedirect.com/science/article/pii/S0313592618300596

I’m against cutting the tax as I feel 30% with a refundable franking credit is fair for Australians.

That said if you want evidence to the question you ask, take a look at Australia’s growth since cutting taxes since the 1988

 

[NSWCROW]

 

[Patrick Bullet]

I’m against cutting the tax as I feel 30% with a refundable franking credit is fair for Australians.

That said if you want evidence to the question you ask, take a look at Australia’s growth since cutting taxes since the 1988

Wow!! All of that growth was due to the tax cuts?! Let's cut tax to zero!!

 

[Power Raid]

Wow!! All of that growth was due to the tax cuts?! Let's cut tax to zero!!

Of course not, so no need for stupid comments.

There have been loads of reforms that have lead to this.

The opening post has requested evidence proving lower taxes have resulted in growth and history is our greatest guide.

 

[Power Raid]

Planting economic time bombs is the only economic policy that unites the Libs,its all about dismantling medicare by stealth.
Nationals are just hillbillys who have no idea who they are supposed to be representing

Lower taxes equals dismantling Medicare?

 

[Patrick Bullet]

Of course not, so no need for stupid comments.

There have been loads of reforms that have lead to this.

The opening post has requested evidence proving lower taxes have resulted in growth and history is our greatest guide.

Your argument was stupid. Hence my stupid response. ITT is a link to some peer reviewed evidence. I'll stick with that for now.

 

[Power Raid]

Your argument was stupid. Hence my stupid response. ITT is a link to some peer reviewed evidence. I'll stick with that for now.

The twitter or the one you haven’t read addressing the wrong question?

 

[Elroo]

With the company tax cuts we received we didn't put on any extra workers or increase their salaries. We had an extra holiday overseas instead.

 

[Reynolds Number]

Middle management folk want their company vehicles and lavish Friday night drinks with their clients.

Besides the amount of work around in this slow economy does not warrant the introduction of new jobs just for the sake of more jobs.

 

[Kram]

Nationals are just hillbillys who have no idea who they are supposed to be representing

Do you eat bread?

 

[Gough]

Do you eat bread?

Precisely, Matt Canavan is up at the Press Club spruiking coal mines. They've been absorbed by the Libs on so many issues.

 

[NSWCROW]

 

[Power Raid]

It really comes down to how the govt would spend the money vs companies and ultimately the shareholders

 

[Number37]

It really comes down to how the govt would spend the money vs companies and ultimately the shareholders

No it doesn't.

 

[Elroo]

View attachment 477373

the graph shows the outcomes in terms of movements in the wage share in national income (%) and the profit share (%)

 

[Baltimore Jack]

 

[Frank Grimes]

I'm not 100% sure because I only heard it from a headline or brief mention, but Japan has introduced legislation for company tax cuts only for companies who increase the wages for their employees. I kind of like that idea. It enforces the aim of the idea of what it is trying to achieve.

 

[Lebbo73]

View attachment 477373

Could you produce a graph that shows a line for inflation running besides the one for wages growth? That would be more relevant and justify whether higher wages are justified!