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Globalisation and the Dilemmas of Income Taxation in Australia


Eccleston, RG and Ganghof, S, Globalisation and the Dilemmas of Income Taxation in Australia, Australian Journal of Political Science, 39, (3) pp. 519-535. ISSN 1036-1146 (2004) [Refereed Article]

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DOI: doi:10.1080/103614042000295129


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.

Item Details

Item Type:Refereed Article
Research Division:Human Society
Research Group:Policy and administration
Research Field:Public policy
Objective Division:Law, Politics and Community Services
Objective Group:Government and politics
Objective Field:Political systems
UTAS Author:Eccleston, RG (Professor Richard Eccleston)
ID Code:44763
Year Published:2004
Web of Science® Times Cited:20
Deposited By:Government
Deposited On:2007-06-19
Last Modified:2010-06-18
Downloads:2 View Download Statistics

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