Greens move to save $18 billion lost from corporate tax revenue

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The Labor government’s proposed reduction of the corporate tax rate from 30% to 29% will cost other taxpayers $2.4 billion in 2013-14 and $18 billion over the next decade, new figures released today by Greens Leader Bob Brown show.

“At a time of huge budget cuts in Australia, we will oppose the government’s proposed corporate tax cut for big business,” Senator Brown said in Melbourne, where he will deliver the keynote speech today at the ACOSS 2011 National Conference.

“The Australian Greens will be moving to scrap the 1% tax cut for large businesses, while supporting the cut planned for small businesses. Note that Ireland and Iceland were champions of low tax rates for companies, at 12.5% and 18% respectively.”

“The government should consider using the revenue protected by scrapping the tax cut for big businesses to start to put in place a national dental care scheme or an increase of $50 a week for NewStart, youth allowances, Austudy and Abstudy and single parenting payments,” Senator Brown said.

“The research released today showed that the proposed slashing of government revenue is equivalent to almost half (47%) of the proposed Mineral Resources Rent Tax. The biggest beneficiaries will be the big mining companies and the ‘big four’ banks,” Senator Brown said.

“Besides passing up the chance of a sovereign fund, it strips future funding from a national dental care scheme, allowances, and fairer pay for teachers and health professionals. Tony Abbott would strip even more away from services and support.”