A potential structural deficit in using MRRT to fund company tax cuts

Comments on Joe Kelly “Industry attacks Greens vow to oppose company tax cuts”, 29/03/2011, http://www.theaustralian.com.au/national-affairs/industry-attacks-greens-vow-to-oppose-company-tax-cuts/story-fn59niix-1226029856403

Leaving aside whether the Australian company tax is international competitive or not, the tax cuts to company tax rates MAY ACTUALLY COST more than the MRRT would collect.

Remember that there are reports that the big three mining that did the deal MRRT with Gillard might not believe the MRRT would collect as much as Treasury study forecast? They are big companies and it's their money at stake, so they were unlikely to have made a mistake in their calculation. I'd bet they were/are correct.

Further, remember Treasury's number changes in the tax revenue estimates between Rudd's SPRT and Gillard's MRRT? It was suspicious then and it is still suspicious now. It looked like a joke and it has been one.

If an independent audit was done for the Treasury estimates, it would shed some light on the issue.

All they suggest is that the MRRT will not collect the amount of revenue that the Gillard government has been saying.