Corporate tax cuts lead to 'jobs and growth' in Australia? Pull the other one!

This Business Council of Australia survey was apparently mothballed when initial results indicated that it would reveal the truth about outcomes flowing from the Turnbull Government’s planned corporate tax cuts - a distinct lack of jobs and wages growth.

Financial Review, 27 March 2018:

Fewer than one in five of Australia's leading chief executives say they will use the Turnbull government's proposed company tax cut to directly increase wages or employ more staff, according to a secret survey conducted by the Business Council of Australia.

More than 80 per cent said they would either use the proceeds to boost returns to shareholders or invest in the company.

The explosive revelation comes as the government is still struggling to secure the final two Senate votes needed to pass the remainder of the $65 billion package.

The survey follows a letter to all Senators last week by the BCA and 10 of the nation's top chief executive officers in which they pledged to reinvest the proceeds of the tax cuts with the ultimate aim of increasing wages.

"If the Senate passes this important legislation we, as some of the nation's largest employers, commit to invest more in Australia which will lead to employing more Australians and therefore stronger wage growth as the tax cut takes effect," the letter said.

But The Australian Financial Review has learned that the BCA directly surveyed the chief executives of its 130-plus members about a company tax cut this year, in the wake of the company tax rate cut in the United States.

The chief executives were asked which of four options they would nominate as their preferred response to the company tax cut in Australia.

These were: returning funds to shareholders; more investment; increasing the wages of their existing workforce; or increasing employment.

More than 80 per cent nominated one of the first two options while only 16 per cent to 17 per cent nominated higher wages or employment.

The survey results are understood to have been tightly held but were reported on internally in a memo entitled "the good news and the bad news".

A spokesman for the BCA confirmed the survey to the Financial Review on Monday but downplayed its significance…….

This lobby group has now decided that 'spin' is more important than fact and senators have all received a BCA video appeal promising well-paid and meaningful jobs and wages growth that only growing investment can deliver if the comapny tax cits are passed.

A neat trick given that its members are also arguing before the Fair Work Commission Annual Wage Review 2017-18 that the minimum wage should remain as is or only be increased by 34-35 cents an hour which represents no growth in real wages.

The vague, slyly worded non-promise to lift workers wages received by Senators

via @Tony_Burke

Google some of the businesses on this short list and one finds an unflattering employer history with regard to employee wages and job terms & conditions.