What the OECD doesn't mention is that company tax is very different here in Australia because of franking credits. Of course a company tax cut won't affect the income distribution for Australian tax payers since all company tax is passed through to personal tax system by the franking system. What a company tax cut does is shift the tax burden from foreigners onto Australians. What Australian would be in favour of that other than our Treasurer?
I would be in favour of raising the company tax rate and reducing the upper personal income tax rates so that there is no incentive to incorporate (i.e. all income is treated the same). The great thing about this approach is foreigners would pay more tax and Australians less.
