Trumpism Is Contagious: Australia Now Looking to Lower Corporate Tax Rates
Guest post by Joe Hoft
Other countries are now seeing the common sense in President Trump’s policies. Australia is now considering lowering its corporate tax rate to better compete with other nations.
The Daily Telegraph out of Australia reported today that President Trump’s tax plan may be a great idea –
President Donald Trump’s tax reform bill is huge for the US and potentially huge beyond the US.
Overall, the bill – if passed – will cut some $1.5 trillion in taxes:
The centrepiece of the reform package is a slashing of the business tax rate from 35 per cent to only 20 per cent, a move Republicans argue will boost the economy, create jobs and drive salaries higher.
Republicans argue that the reforms will also see sweeping tax cuts to the middle class but the final impact on middle class is less clear under the package. While the Senate bill would deliver tax relief immediately to around 70 per cent of middle class voters, it would also remove many other tax breaks which have traditionally benefited those same voters.
The Telegraph notes that Australia leaders are noticing President Trump’s policies and realizing they too must change in order to compete globally. Malcolm Turnbull is sounding Trumpish, in his response to Trump’s tax plan:
Malcolm Turnbull promises personal income tax cuts will be announced before the 2019 federal election, running alongside his government’s push for cutting the company tax rate cut to 25 per cent for all businesses.
“How much we can do and when we do it will depend on the budgetary circumstances but we do have the ability to do it,” the prime minister told Sky News on Sunday.
President Trump is not only winning at home but his policies will enable individuals outside the US to win as well.
The result to all this is that the consumers win with lower priced goods not burdened with high levies, workers benefit with more jobs and hirer wages, tax paying individuals benefit with lower tax payments, and governments win with higher GDP’s resulting in higher tax revenues. It’s called winning!
Hat tip Michael