Tan Bao (online picture)
According to the Australian News Network, Tan pledged to introduce a personal income tax cut before the federal election in 2019, while pushing the goverment to cut all corporate tax rates to 25 percent. He believes the move will not threaten the goal of achieving a balanced budget by mid-2021.
"how much and when we can do it will depend on the budget situation, but we do have the ability to do that," Tan said on December 3.
Mr. Tan said goverment had clear ideas about this when he revealed his personal income tax cuts in a speech at a business dinner two weeks ago. "the focus of our work is to hope that more money will go into the pockets of hard-working Australians. However, we still have to live up to our commitment to achieve a balanced budget by 2021. "
It is understood that the Senate earlier narrowly approved President Trump (Donald Trump) `s proposed tax cuts, including a reduction in the U.S. corporate tax rate from 35 percent to 20 percent.
Mr Tan said the aim was to keep the economy competitive by raising the tax rate from 30 percent to 25 percent.
So far, Congress has agreed to cut taxes on companies with annual turnover of less than A $50 million.
But Labour MP Hammond (Tim Hammond) says Australia`s economy simply cannot afford A $65 billion in corporate tax cuts. "there are many ways to create a positive investment environment. We do not have to cut tax rates. This will lead to budgetary loopholes."
