Government Business Relations For Tax Cuts

Overview of the article

Discuss about the Government Business Relation for Tax Cuts.

The article is portraying the clear picture of the trade union policies. The illustration of the relation between the trade union and the employers is defined in a clarified way. The article provides the conceptualised ideas about the internal corruptions that drive towards the loss of the workers. Michaelia Cash proposed the initiative to ban the union leaders in order to diminish the corrupted payments. On the other hand, the initiative was highly criticised. However, the article provides the conceptual idea about the current relationship between the government and employers. The interference of the union leaders is sometimes negotiable for the employers. In other times, the workers have to face the loss mostly. The government is thus trying to take the justified action to eliminate the corrupted business practises that have been hampering the business activities. In comparing this particular article with the previous one, it is seen that both the articles present the internal relationship between the government and the industrial businesses. The reference of the different statutory situations is also prominently influencing the linking between the regulators and the businesses.

The article is presenting the argument regarding the consequences of tax cut. It is mainly highlighting the ideas about the significance of tax cuts. It is necessary to understand whether the tax cuts have been suggesting the growth of the average workers or the unaffordable gifts for foreign billionaires. The article also highlights the different perspective of Bill Shorten in 2011 and 2016 regarding such matter. The article is written by the staff writers of Daily Telegraph and it was published on 6^th June, 2016 (Dailytelegraph.com.au 2016). Daily Telegraph posts about the current business affairs. More specially, this particular article defines the argumentative statements by judging the former and latter opinion of Bill Shorten. Hence, the works of the publisher is quite significant enough to present the picturised view of the government business relations.

The article is highlighting that in the year of 2011, Bill Shorten requested the government for the tax cuts. It was stated that if the tax cost will be lower, there will be more opportunity to create new businesses. In fact, due to the lower tax rate, the foreign investments will be broader (Baccini, Li and Mirkina 2014). It is noted that many of the foreign companies are attracted towards the Australian economy (Bloomfield 2016). Hence, if the parliamentary or the government tax cuts down, it will assist in enhancing the growth opportunity of foreign investments. In fact, Mr. Shorten delivered a speech in “Australian Council of Social Service National Conference”, which indicated similar concern (Dailytelegraph.com.au 2016). He exclaimed that the reformation brought to the government tax cut is beneficial for increasing the number of the private sectors in Australia. However, in spite of discussing the benefits of tax cuts in 2011, he presented a contradictory view in 2016 (Leigh 2013).  He informed the reporters that the business scenario has been changed in this current time. It is said that the nation can cut the tax for the companies only if the nation can afford it. Moreover, government even started planning for reducing the tax from 30% to 25% over the upcoming decades.

Understanding the relationship between trade unions and employers

On the other hand, it is seen that lower tax rate increases the opportunity to invest more on the small businesses. In supporting this statement, the assistance Treasury Spokesman informed the media channel, “We know the company tax rate is a significant drag on growth, largely because capital is more footloose than labour and so there’s potential for us to miss out on high-quality investment if we have too high a company tax rate” (Dailytelegraph.com.au 2016). Apart from his statement, many of the business personnel presented their similar view regarding such matter. The finance minister opposed such view and criticized Bill Shorten directly. He stated, “The truth is Bill Shorten knows, in his heart of hearts, what is the right thing to do here. He’s just too weak to deliver it”. While on one side, the tax cuts has proven to be beneficial for the business investments, Ms Wong insisted the oppositions presented by the labour against the government’s planning of reducing costs. She thinks that instead of cutting the tax rate from the business earning, the tax break earned from the businesses can be invested into Australian schools. In keeping focus on such argumentative discussion, the article describes the government and business relationship promptly.

The article describes the contradictory views based on the relationship between Government and Businesses. The article presents a contradictory view regarding the effective relationship between the government decisions and industries in different countries. However, the article is mainly describing the government business relationship in Australia. The contradictory view of the previous and current business system has also highlighted in this business articles. Moreover, the article provides the idea for establishing the better relationship between government and business. The article demonstrates that the tax cut can improve the business investments and grow many small businesses. The labour will even receive the opportunity to establish their career in the business market. More specifically, the Australian economy is buffeted by the foreign businesses. In such cases, the tax cut would be helpful in creating new jobs. On the other hand, the contradictory view is specifying that if the government could invest such tax received from the business into the schools and medicating process, it would be beneficial for the country. It will not only improve the country’s economic value, it will improvise the government business relationship as well.

The article is reflecting the decision of Michaelia Cash, the Employment Minister regarding the adoption of “Overwhelming Majority” of recommendation. This initiative suggests the elimination of the union members from taking part in the employment procedure. The major purpose is to describe the process of diminishing the corrupted unlawful conduct by the Union leaders. The article covers up the idea about the steps undertaken by Michaelia Cash to eliminate the “corrupting benefits”, which are paid between the unions and employers (Theguardian.com 2016). However, imposing such regulation is not an easier process. Hence, the article will be describing the contrasting comments of the senate members as well. Paul Karp wrote this article, which was published in The Guardian, a well known business journal.

Initiative proposed by Michaelia Cash

The article has presented several assumptions and conceptual ideas about the government and business relationship. It is noted that the government has undertake the decision of eliminating the “corrupting benefits” that ensure the payment between the employers and unions (Lam 2016). Therefore, the government gives the permission to the court to dismiss the union leaders to conduct such unlawful acts. In supporting such initiative, Michaelia Cash, the employment minister revealed that the government is looking forward to undertake the appropriate recommendations from the royal commission of trade union. However, there is still confusion on whether the government will adopt the recommendations from the productivity commission or not. Cash mentioned that the government will provide the full authority to the court to disqualify the officials associated with the trade union. She is even well aware of the oppositions of the labour against such initiative, but she considered this decision free from controversies (Theguardian.com 2016). She even presented the argument by stating that the company drivers and directors are eliminated for the continuous and frequent offences. In fact, the workplace should also maintain similar practices.

However, Dave Noonan, the national secretary of Construction Forestry Mining Energy construction, illustrated the contradictory scenario in such regards. He mentioned that the Senator Cash is unable to understand the fact that the workers are associated to select their union officials. He also notified that politicians and courts are not authorised people to choose the union leaders, as this is completely democratic. He pointed out that government had not accepted the bizarre recommendations related to the elimination of construction officials. However, the main focus of Michaelia Cash is to determine the refusal of secret payments between the employers and the unions. This act is generally termed as “corrupting benefits”. However, it is somewhat defined as the conflict of interests related to the changing hands between a union and an employer (Kamerman and Kahn 2013). She exclaimed it is unauthentic to negotiate the labours’ wages by visiting the employers’ offices and striking a deal. The workers will be at loss from every aspect. She also informed that undertaking such initiative would not harm the ‘legitimate payments’. In opposing such mentality, Mr. Noonan suggested that the government should pay attention towards to the liberal links if they are much concerned about the corrupting payments (Pekarek and Gahan 2016). In supporting such though, Brendan O’Connor, the Shadow Employment Minister, stated that the labour should receive the opportunities to be thee permanent employees by considering several objective tests. It is also noted that O’Connor criticized the governments’ failure regarding the industrial relation policy. The method that government has undertaken to reduce such corrupt activities is highly controversial.

References

Baccini, L., Li, Q. and Mirkina, I., 2014. Corporate tax cuts and foreign direct investment. Journal of policy Analysis and Management, 33(4), pp.977-1006.

Bloomfield, A., 2016. Explaining the Turmoil at the Top of Australian Politics and the Implications for India. India Quarterly: A Journal of International Affairs,.

Dailytelegraph.com.au, 2016. Bill Shorten’s stunning backflip. [online] Dailytelegraph.com.au. Available at: <https://www.dailytelegraph.com.au/business/economy/bill-shorten-denies-hypocrisy-defends-labor-backflip-on-company-tax-cuts/news-story/d037bb59fa647a2b76d326a6ca87db86> [Accessed 19 Sep. 2016].

Kamerman, S.B. and Kahn, A.J., 2013. The responsive workplace: Employers and a changing labor force. Columbia University Press.

Lam, N.M., 2016. Business-government relationship in economic development. Asian Education and Development Studies, 5(4).

Leigh, A., 2013. Battlers & billionaires: The story of inequality in Australia. Black Inc..

Pekarek, A. and Gahan, P., 2016. Unions and collective bargaining in Australia in 2015. Journal of Industrial Relations,.

Theguardian.com, 2016. Australian government wants to give courts power to disqualify union leaders. [online] the Guardian. Available at: <https://www.theguardian.com/australia-news/2016/jun/17/government-wants-to-give-courts-power-to-disqualify-union-leaders> [Accessed 19 Sep. 2016].