Sinclair Davidson examines the arguments for corporate taxation and concludes that flawed assumptions are propping up Australia’s corporate tax rates. Australian corporate taxation is highly concentrated, with many corporates not paying any tax at all or paying very low rates of tax, while a small number pay a high level of tax. The corporate tax...

Fiscal illusion is the political art of crafting tax and expenditure policies to make taxpayers think that taxes are not as onerous as they appear. Sinclair Davidson argues that big government distorts its citizens' fiscal consciousness to allow it to raise more tax revenue and spend more than it otherwise could. Fiscal illusion gives governments...

In this paper I argue that the criticism of tax competition is overblown. The whole notion of 'harmful' tax competition itself is ill-defined. The OECD began its campaign against tax competition on the basis of assumed harm and has failed to demonstrate any such harm from competition between nations. In addition, I argue that most...

Not only this, but cuts in marginal tax rates induce people to work harder in situations where they have an effective choice between work and leisure hours. Davidson shows that the highest earners in Australia already pay much more than their 'share' of charitable donations, and that 'high levels of taxation - especially high rates...