One Nation closing up shop for Australia

Writingin today’s The Australian FinancialReview, Liberal Democrats Senator David Leyonhjelm said Pauline Hanson’s oppositionto a lower company tax rate of 25 per cent would see potential foreigninvestors look to countries other than Australia, leading to less competitionfor workers and continued stagnation of wages.

“Morethan half a million Australians voted for One Nation, in part of because of oppositionto foreign investment,” Senator Leyonhjelm said.

“Theirony is many of these voters are employed in the infrastructure, mining,energy and healthcare industries, so their futures and the futures of theirfamilies rely on foreign investment.”

SenatorHanson’s claim that a company tax cut would not help workers or retireesbecause of dividend imputation was grossly inaccurate, Senator Leyonhjelm said.

“Companiesonly reinvest a proportion of their profits, so, as each year passes, a companytax cut would boost the funds that companies reinvest,” he said.

“Thistranslates into additional jobs. When this investment flows through to profits,the increase in the distribution far exceeds the drop in the dividendimputation credits. A company makes areturn on reinvested profits, not on dividend imputation credits.”

Australia’scurrent company tax rate of 30 per cent was the worldwide average back in 2003.

In2016, measured across 202 tax jurisdictions, the average was 23 percent.

“Asa result, the great majority of the countries of the world charge companies farless than Australia for the privilege of investing in their countries,” SenatorLeyonhjelm said.

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