Australia. Jim Geraghty, Morning Jolt
Meanwhile, down under in Australia, they’re worried that businesses will shift operations and investors will refocus upon the United States because of the lower tax laws. The US company tax rate, however, is critical because as the world’s largest economy, a cut would result in investment and capital flowing back into the country at the expense of nations such as Australia, whose higher tax rates would make it uncompetitive and less attractive as an investment option. Scott Morrison told The Australian that the Treasury analysis confirmed the IMF forecasts, which at the beginning of the year had been only hypothetical. The Treasurer said they were now a reality. “The Trump tax cuts are coming. If we fail to respond, they will take Australian jobs, investment and wages with them,” Mr Morrison said.