Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

Firstly, it is not a $65 billion handout to big business. It is leaving more of the businesses' money with them so they can reinvest it in their future growth and expansion so they can hire more Australians. I don't expect Senator Carr to understand basic economics, but if you go and look at what the shadow Treasurer used to say you'll see the shadow Treasurer knows that the burden of a higher company tax rate falls most heavily on workers. Why does a company tax cut lead to stronger wages growth? As there is more investment, stronger growth and more competition for workers in the marketplace, wages will go up. The key ingredient for stronger wages growth—and this is economic orthodoxy 101—is always more competition for workers and a depleting excess supply of labour.