Business Services Industry

Mums and dads wouldn't credit company tax cuts.

Australasian Business Intelligence, October, 2006

Byline: Barrie Dunstan

Oct 15, 2006 (The Australian Financial Review - ABIX via COMTEX) -- In a paper published in October 2006, Australian economist Nicholas Gruen argued the case for a cut in company tax rates. It is an issue that should concern small investors because he suggests that the revenue shortfall should be made up by scrapping the tax imputation system. If this actually became fact, then it would reduce the net income from shares by a substantial amount. It means that once again, dividends would be taxed twice. Small share investors are comfortable with the imputation credits system and there is little chance that it will be changed in the near future.

Publication Date: 14 October 2006

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