If you don’t think what America does has a butterfly effect around the world, you’re amazingly naive. Democrats in the United States have wailed and moaned about the negative effects of Trump’s tax cut non-stop since it became apparent it was going to pass.
Now, the butterfly effect has already rippled across the sea to the Land Down Under. Despite what socialists claim, the facts prove that lower taxes bring prosperity, jobs, and pumps money into an economy. Under a socialist system, that is extraordinarily difficult at best, and the high tax rates have been proven to stifle the creation of jobs, new businesses, or prosperity.
So what happens when the USA cuts taxes? Other nations panic and the notion that socialism actually works takes a shot to the gut. Thank goodness for that.
Now, to the story.
Australian Treasurer Scott Morrison sounded alarm bells about the impact of the recently-passed American tax cuts on Australia’s economy.
If Australia doesn’t pass its own version of the Trump tax cuts, Morrison fears the country will take a hit to its GDP of up to 1 percent. Morrison initially proposed a $65 billion tax cut, saying it would add 1 percent to Australia’s GDP. After Trump’s cut, however, Morrison warned that the cuts are necessary for the country’s economy not to contract, reports The Australian.
Morrison cited treasury analyses showing that Australia “may experience a significant recessionary impact and a potential downgrade in revenues if it does not lower its corporate tax rate from 30 percent to 25 percent in coming years, in response to Trump’s cuts,” according to The Guardian.
Because the United States will no longer be a country with one of the highest corporate tax rates in the developed world, Australia risks being “marooned,” as the country’s Treasury Department said in its analysis.
Morrison said: “The Trump tax cuts are coming. If we fail to respond, they will take Australian jobs, investment and wages with them.
Mr Americana, Overpasses News Desk
December 22nd, 2017
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