Andrew Leigh had a great piece in the AFR yesterday. It was a bit naughty.
On the morning that Tony Abbott released his proposal to pay for paid parental leave with a tax on Australia’s 3200 largest firms, I was reading Norman Lindsay The Magic Pudding to my three year old son. As you know, it involves a pugilist strolling around outback Australia, punching his enemies on the nose and promising his friends a free lunch. The Magic Pudding has a similar storyline.
No mention that Andrew is running for ALP preselection in Fraser.
It was the overall thrust of the piece that I liked. Abbott’s paid parental scheme is a form of corporate tax and the incidence of corporate tax is likely to fall on workers – low-income workers at that, so the tax is regressive.
Further down the pecking order, there are plenty of modestly-paid workers toiling in the retailers and banks that make up Australia’s largest businesses. If a company tax increase is passed on to employees, these are the people who will pay for parental leave.
That’s about right – it would be churlish to quibble. But that argument applies to the whole of the corporate tax. So if we have a regressive tax that falls on labour, well then the Labor Party should oppose it. So to with the payroll tax that Andrew criticises.
big businesses are already hit with a special tax that falls on workers, because the payroll tax doesn’t apply to small enterprises
We should all wish Andrew well in the preselection – we need MPs who will fight against the tyranny of corporate tax and stand up for the oppressed.