The Australian argues that if Donald Trump cut the US corporate tax rate from 35 per cent to 15 per cent, such a huge cut will unleash a dramatic readjustment of global capital, sucking investment away from Australia.
The value of foreign investment in Australia has collapsed by half since 2015, at the same time as international global flows have surged. Australias share of the global total has shrivelled from 3.2 per cent to 1.3 per cent since 2011, according to the Treasurer, Scott Morrison.
Part of the blame must be sheeted home to Australias increasingly absurd 30 per cent company tax rate, which Labors Henry tax review singled out in 2010 as the most economically damaging federal tax.
Company tax is set to become an even greater weight on Australias competitiveness and productivity as the US looks to ease the burden on its businesses and workers.
Donald Trump has promised to cut the US corporate tax rate from 35 per cent to 15 per cent; his congressional allies want 20 per cent. Whoever prevails, such a huge cut will unleash a dramatic readjustment of global capital, sucking investment away from countries such as Australia.
