The economics, incidence and modelling of corporate tax reform
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Roundtable
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This invitation roundtable discussion brings together academics, researchers, senior public servants and other stakeholders to discuss technical and policy aspects of the government’s proposed corporate tax cut (the Enterprise Tax Plan). It will then address issues about the future design of the corporate tax base and rate for Australia, in light of international developments and challenges. The corporate tax performs multiple functions in the Australian tax system and so corporate tax policy must be pragmatic, building on what we can learn from economic modelling, insights from theory and other country experiences.
Part 1 - The Enterprise Tax Plan Part 1 will focus on the Enterprise Tax Plan, the expected economic and fiscal effects in the short and longer term, depending on how the company tax cut is financed and issues relating to domestic and foreign, large and small business.
Part 2 - Future of corporate tax design Part 2 will address future design of the corporate tax base. Proposals being debated internationally and in Australia aim to address issues of competitiveness; base erosion and profit shifting; taxing economic rents; and removing distortions between debt and equity financing. There is a fundamental question of protecting source taxation or shifting to a destination base. Specific proposals include the cash flow tax (either destination or source based); an allowance for corporate equity (ACE) ; a comprehensive business income tax (CBIT) or combination ACE-CBIT; strengthening the withholding tax regime; the use of investment allowances; or a dual income tax. A question remains about dividend imputation in all of these systems.
Invited commentaries include:
- Janine Dixon, Victoria University
- John Freebairn, University of Melbourne
- Jim Minifie, Grattan Institute
- Jack Mintz, University of Calgary, Canada
- Greg Smith, Commonwealth Grants Commission
This roundtable discussion was co-hosted by the Minerals Council of Australia.
Updated: 29 March 2024/Responsible Officer: Crawford Engagement/Page Contact: CAP Web Team