Download Fatuous 50 has no idea of real world: think tank

Fatuous 50 has no idea of real world: think tank
1 of 2
http://www.theaustralian.com.au/national-affairs/treasury/fatuous-50-ha...
THE AUSTRALIAN
Fatuous 50 has no idea of real world: think tank
SID MAHER, RACHEL BAXENDALE THE AUSTRALIAN APRIL 14, 2016 12:00AM
A high-profile group of unionists, academics and former public servants who oppose
a corporate tax cut in the budget has been dubbed “the fatuous 50’’ by a
conservative think tank.
Institute of Public Affairs chief John Roskam said many in the group had “spent so long on
the public teat and no doubt have defined benefits superannuation schemes and won’t be
affected by changes to superannuation’’.
“Their real world experience, for so many of these people is limited to the university
common room. They have little idea about what it takes to run a business, employ people
and create wealth,’’ he said.
Mr Roskam’s jibe sparked an immediate backhander from the progressive Australia
Institute think tank, which declared the group spoke for most Australians who wanted a
clampdown on tax concessions for “the big end of town”.
In an open letter published in Fairfax newspapers, the group urged Malcolm Turnbull “not
to cut tax at this time — and certainly not for companies’’.
The letter comes as the government debates income and company tax levels as a proportion
of GDP, which next year is set to rise above its long-term average of the past 30 years, and
bracket creep puts more workers into higher tax brackets.
The group said data from the OECD, the International Monetary Fund and the World Bank
made clear “Australia is a low taxing country. To have world-class health, education and
transport services we need to collect the revenue to fund them’’. It said real tax also
required “fairness’’.
The group included former Reserve Bank governor Bernie Fraser and Keating government
health minister Carmen Lawrence, academic and author Robert Manne, ACTU president
Ged Kearney, and GetUp! founder Simon Sheikh who runs superannuation fund Future
Super.
Mr Fraser dismissed the growth arguments for cutting the corporate tax rate.
“The argument that comes from supporting such a move is based upon very discredited
trickle-down ideology,’’ he said. Another signatory was Josh Bornstein, whose law firm
Maurice Blackburn has recently been criticised over slow payments to Victorian bushfire
class action clients, and who previously headed the progressive Per Capita think tank.
As a Maurice Blackburn principal, Mr Bornstein last year shared in a $16 million dividend
as a result of the action, while Black Saturday victims are yet to receive a cent.
14/04/2016 7:45 PM
Fatuous 50 has no idea of real world: think tank
2 of 2
http://www.theaustralian.com.au/national-affairs/treasury/fatuous-50-ha...
Australia Institute executive director Ben Oquist, who organised the letter, said: “Given all
the scandals about corporate tax evasion and a constant hectoring about living within our
means, the 50 community leaders and economists look like they are on the money.’’
The Centre for Independent Studies said the letter was “inconsistent and misguided’’.
Centre economist Michael Potter said OECD statistics had company tax in Australia raising
4.9 per cent of GDP in 2013 (the latest year available). The unweighted OECD average was
2.9 per cent.
14/04/2016 7:45 PM