Treasurer Scott Morrison says the Turnbull government will continue to pursue its full 10-year business tax cut plan after a crossbench senator offered a compromise reduction for firms with a turnover of up to $500 million.
“We are going to continue to pursue the full tax cuts right across the board because we know that if you tax your economy less, it grows more,” Mr Morrison told reporters in Canberra on Tuesday.
“We know that if we don’t insist on companies paying the government more in higher taxes they can invest more in their business and pay their workers more.”
So far only a corporate tax rate cut from 30 per cent to 25 per cent has been legislated for businesses with a turnover of up to $50 million.
Crossbench senators Derryn Hinch and Tim Storer proved the stumbling blocks for the Turnbull government trying to get the rest if the plan through the Senate before Easter. Labor, the Greens and Nick Xenophon’s team have also opposed the reduction.
But Senator Hinch can’t see why tax reductions for firms with up to $500 million can’t be passed now, and the government take the cut for big business to the next election.
He said you can’t have the big banks being investigated by a royal commission into their “disgusting behaviour” and then reward them with a five per cent tax cut.
Mr Morrison also rejected an Australia Institute suggestion for higher taxes to address inequality and ensure ongoing prosperity, describing it as a “numpty of an idea”.
“The idea that you increase taxes to grow the economy is stupid,” Mr Morrison said.