Wednesday, April 11, 2018

ACTU – Tax cuts for big businesses are a major fail for working Australians

11 April 2018

Big business and their representatives at the Business Council of Australia are deceiving the Senate and the Australian people about the impact of tax cuts for working Australians.

Trickle-down economics doesn’t work, it’s a lie. Tax cuts to big business do not generate jobs for working Australians, nor do they improve wages.

The ACTU’s submission to the Senate Standing Committee on Economics inquiry into the BCA’s commitment to the Senate argues these tax cuts will not lead to more secure jobs for Australian workers or; give workers the pay rise they desperately need.

Half of the companies that signed onto a statement from the BCA pledging to invest more in Australia and pay better wages if the Turnbull Government passes its $65 billion tax cuts, do not currently pay any corporate tax in Australia.

This results in $65 billion being taken away from our schools and hospitals

Energy Australia, JBS, MYOB, Origin Energy and Qantas did not pay a cent of tax between them despite a combined income of $35 billion a year according to the most recent figures from the tax office, but say they need a tax cut so they can invest in Australian jobs.

Quotes attributable to ACTU Secretary Sally McManus:

  • “The Business Council’s statement to the Senate is a farce. The Turnbull Government is handing billions of dollars to big business to reduce the tax rate of companies which do not even pay tax.
  • “Rather than endlessly doing the bidding of the BCA, the Turnbull Government should be making sure that big business is actually paying their fair share of tax.
  • “The hypocrisy of these companies is breathtaking. They’re crying poor while enjoying record profits and avoiding paying their fair share of tax while the wages of their employees are barely improving above inflation.
  • “The only obvious beneficiaries of the tax cuts the Turnbull Government is proposing are those calling the mostly loudly for them – overseas shareholders and CEOs in their bonuses – not working people.
  • “Tax cuts to big business are nothing more than a tax-payer funded handout to big business.”

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