{"id":62252,"date":"2025-08-12T10:02:12","date_gmt":"2025-08-12T10:02:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/62252\/"},"modified":"2025-08-12T10:02:12","modified_gmt":"2025-08-12T10:02:12","slug":"cutting-company-taxes-is-economic-fools-gold","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/62252\/","title":{"rendered":"Cutting company taxes is economic fools gold"},"content":{"rendered":"<p>Economist Ross Gittins from the SMH has <a href=\"https:\/\/www.smh.com.au\/business\/the-economy\/it-s-official-a-cut-in-company-tax-will-deliver-little-benefit-at-best-20250810-p5mlqv.html\" rel=\"nofollow noopener\" target=\"_blank\">pilloried<\/a> the Productivity Commission\u2019s (PC) proposal to cut Australia\u2019s company tax rate to 20% for all but the largest 500 firms with annual turnovers of $1 billion, alongside introducing a 5% tax on the annual net cash flow of all companies.<\/p>\n<p>The two sets of general equilibrium models underlying the PC\u2019s recommendation suggest that business investment would increase by 1.4% and 0.6%, respectively, which would lift the nation\u2019s productivity by around 0.4%. These are one-off level increases, not annual increases.<\/p>\n<p>\u201cDoes the modelling provide reasonably strong support for cutting company tax to make the economy bigger and better? Well, no, not really. Those results are shockingly small\u201d, Gittins wrote.<\/p>\n","protected":false},"excerpt":{"rendered":"Economist Ross Gittins from the SMH has pilloried the Productivity Commission\u2019s (PC) proposal to cut Australia\u2019s company tax&hellip;\n","protected":false},"author":2,"featured_media":62253,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-62252","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/62252","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=62252"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/62252\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/62253"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=62252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=62252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=62252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}