'Jobs and growth': $24 billion company tax cut could be worth just 0.2 per cent to economy

Just so people are aware of the facts... I'm going to play devil's advocate here but I want you to know I am a strong Greens supporter, followed by Labor. I consider myself left-leaning.

Company tax makes up 17.7% (source) of all tax revenue.

Companies are taxed between 28.5% and 30% currently (source), depending on income. Let's just call it 30% to keep it simple and to prevent people thinking I'm bias.

A reduction from 30% to 25% is a change of about 20%. That is, the tax rate for companies would be 20% lower.

20% of 17.7% is just 3.54%, or $2.7bill annually in reduced taxation income.

I know for a fact that overseas companies are wary of setting up shop in Australia due to the high tax rate. A $2.7bill reduction in tax in order to lure more companies and perhaps encourage new startups is, in my humble opinion, a pretty good gamble.

Finally, the article's $24 billion claim is based over 10 years, and I'm pretty sure even I have it wrong because (don't quote me on this) the company tax rate goes down slowly over 10 years, not instantly.

This is $24 billion that companies can use to make more money. I don't really believe in trickle-down economics but I do at least hope that this means they invest that money in Australia, in jobs, in advertising, marketing, expansion, etc. Because if they do then it will be worthwhile. If it goes to the CEO's pockets, fine, it gets taxed at an even higher income tax rate, and or spent on the economy.

TL;DR My personal opinion is that this might be a good gamble.

/r/australia Thread Link - brisbanetimes.com.au