Company tax cuts bring benefits to people at all income levels, an OECD study has found, and do not unfairly favour the rich. The finding came as Scott Morrison told The Australian he intends reintroducing legislation to cut taxes for companies with turnover above $50 million in the first few weeks after parliament resumes on February 5. “It is an early agenda item for the new year,” the Treasurer said. The OECD study backs government arguments that cutting the company tax rate for all companies will boost business investment and contradicts Labor claims that company tax cuts reward those on high incomes. “Lowering the effective rate of corporate income tax (as part of a tax shift) can deliver substantial income gains for all with few consequences for the distribution of income,” the study says. “No statistically significant effect on the income distribution appears for company income tax.” Australian 11/1
