Still More on the Costs of the Corporate Tax Cut
I spoke to a senior Department of Finance official who tells me that the $6.1 Billion annual revenue loss number for 2012-13 when the rate moves to 15% is calculated relative to the already announced reduction in the rate to 18.5% in 2011-12, NOT relative to the current rate of 22%.
To my mind this means that the “real” annual revenue loss of going from where we are right now to a 15% rate is indeed in the range of $12 Billion, not $6 Billion.
Calculated in this way, the allocation of tax cuts between corporations and people is dramatically different than that presented in the Statement.
How does the revenue loss for the corporate tax cut compare to the revenue loss for the income tax cut?