Tax cuts to compete

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17 October 2006Cutting company tax appears to offer the most effective means of spurring economic growth through tax cuts. It should be brought back onto the agenda of public discussion for policy makers and commentators argues Nicholas Gruen. This is the lesson from both recent economic theory and from results in high-performing economies such as Ireland. In particular, economic analysis over recent years has made a very strong case that lower company tax rates will drive increased investment, particularly foreign investment. In contrast, cuts to personal income tax rates will drive a small increase in economic growth, particularly if those cuts go to higher income earners.

Publication typeReport
CoverageAustralia
Permanent URLhttp://apo.org.au/node/757
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