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The Forum > Article Comments > Who ends up paying company taxes? > Comments

Who ends up paying company taxes? : Comments

By Andrew Leigh, published 19/3/2010

Tony Abbott will pay for his proposed paid parental leave with a company tax. But who will really foot the bill?

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From what I remember is that company tax was paid on company profits after expenses.

This tax would not affect company profits or viability in the existing business envionment, but would reduce the available dividends payable, and thus the share price. (and investment portfolios)

The effect of this is not directly a price increase, but rather a flight of capital from domestic investment to overseas, which is still not a good thing.

Most countries have a far greater allowance for maternity leave, and child care, and as a result have a far greater participation in the workforce by women.

The additional tax from the income generated would go a long way to compensate for this.

Given that majority of university graduates today are women, this should be a vast untapped pool of resources that could drive the economy instead of relying on importing skills from overseas.

I would however, consider 6 months too much and would make it 3 months. (or 6 months at half pay).
Posted by Shadow Minister, Monday, 22 March 2010 12:05:26 PM
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