Letters: company tax cut, constitution and arthroscopes

No logic to BCA case for company tax cut

"Tax cuts will unleash investment" (November 11), according to the BCA, seems to put the cart before the horse. There is no logic to the BCA's argument. Firms increase investment and employment when the demand for their products exceeds supply capacity. With continued stagnant wages, consumer confidence remains low.Therefore, with restrained demand pressure there is little to justify additional capital investment and increased employment by businesses.

And please spare us the promise of the discredited trickle-down benefits from business tax cuts. Furthermore, with no economic pick-up from tax cuts on the horizon, how does the government hope to peg back the ever growing deficit resulting from the shortfall in tax revenue.

As for tax cuts being implemented in the US, which will cause investment funds being "sucked" out of Australia, I will believe it when I see it. Proposed US tax cuts are presently stalled in a dysfunctional Congress and will likely go the same way as Republican efforts to kill off Obamacare.

At the political level, tax cuts to corporations at the top end of town are unlikely to be welcomed by the voters. Extensive media reporting of the tax dodging schemes of big corporations and wealthy individuals have made the public cynical about the need for tax cuts.

Derk Swieringa