Pauline Hanson turns on company tax cuts for multinationals

Photo from the Australian: Pauline Hanson
Contributed by Jim Hayes

Pauline Hanson is once again saying she is opposing the government’s company tax cuts, unless there is an agreement to “go after multinationals.”

She says the cut must not apply to companies with more than $50 million in annual turnover.

There is sound reason for setting the bar at this amount. It would allow some relief to small businesses doing it hard in the present environment.

Whether the maverick leader of One Nation will stick to it is anyone’s guess. She does have a propensity to change her mind mid stride. But so long as she sticks to it, she is doing something right.

She says she wants a crack down on multinational tax avoidance and companies that use overseas call centres to be denied the benefit.

There is no doubt that this package will resonate with many Australians.

It will also appeal to One Nation’s membership and base, and is strategically sensible for Hanson. After one more public brawl and Senate defection, the party’s fracturing has gathered pace, and needs something to pull it together to stop the unraveling.

Hanson has also done herself considerable damage by coming across as autocratic and incapable of listening to others. Her latest stance on this issue provides an opportunity to let her look like she is listening.

Regardless of any of this, opposition to Turnbull’s push for the corporate tax cut to 25 percent is right, in terms of fairness and the needs of the economy. Corporate tax dodging is an even bigger issue, because it robs the Australian community of a great deal of capital that could be put to work, to make Australia a better place.

If One Nation continues to hold firm on this, it will mean the government is not likely to get the cut through the Senate. This would be a positive development.

But we should not rely on it. The government’s corporate backers are determined to see it through. Immense pressure will be put on One Nation and Pauline Hanson personally, to back down.

And the company tax issue is not a stand-alone matter. It touches the bigger question of whose interests the Australian economy should serve. The trickle-down effect argument is dead and buried. Should the bulk of the benefit go to a handful of billionaires, or to the great majority of the population?

This also brings up the role of government. Should it play an important role in in the allocation of resources and distribution of income?

The priorities should be the creation of jobs and and building an economy that rewards all fairly.

For years now, we have been told that the government must cut back on what it provides, because it does not have the funds. Ensuring that big corporations pay their share can go a long way towards resolving this problem.

 

1 Comment on "Pauline Hanson turns on company tax cuts for multinationals"

  1. You can make all the jobs you want, import as many migrants as you want, but it won’t reduce
    global warming and the effects it is going to have on humans and other life on the planet.
    Large Business as usual ( and big families as usual) simply will not do! Unless new jobs are Green jobs, then we are walking in the wrong direction…towards the precipice! But you have to laugh. As if all the people driving SUVs and diesel-powered and other fancy cars or flying overseas for a quick holiday cared about the planet or their kids’ or grand-kids’ futures. Look at how the Chinese government can afford build huge ghost cities, while half their population comes here to study and find a job and buy a house. Sure if there are not jobs here, it is because the existing ones have been taken by people arriving from overseas who have been encouraged to come here by our government’s policies of driving down wages and handing negotiating power to employers,limiting the right to strike, often the very same corporations that are so good at influencing same politicians with free trips to Israel, USA and China, free bottles of wine, free parking at airports, free tickets to football games, etc etc and goodness knows what else. Well, so long as the rich are free to do as they please, let’s call it democracy and say it is worth preserving. I guess the 1% will always be rich:-)

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