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Globalisation and the Dilemmas of Income Taxation in Australia

journal contribution
posted on 2023-05-16, 19:18 authored by Richard EcclestonRichard Eccleston, Ganghof, S
Over the past two decades there has been a worldwide fall in statutory corporate tax (CT) rates. Focusing on Australia, this article establishes three empirical facts which challenge much of the existing literature. First, CT competition was the crucial driving force behind CT cuts. Second, policy makers had to abandon tax-related investment incentives in order to pay for lower CT rates. This broadening of the CT base is costly, because it potentially disadvantages domestic firms and may, over the longer term, erode the CT base. Third, CT cuts have put pressure on the personal income tax base, as low corporate rates provide tax avoidance opportunities for high-income earners.

History

Publication title

Australian Journal of Political Science

Volume

39

Pagination

519-535

ISSN

1036-1146

Department/School

School of Social Sciences

Publisher

Routledge

Place of publication

UK

Rights statement

The definitive published version is available online at: http://www.tandf.co.uk/journals

Repository Status

  • Restricted

Socio-economic Objectives

Political systems

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