Shorten accuses Coalition of parroting Trump on tax cuts

Bill Shorten has accused Malcolm Turnbull of trying to replicate ‘Trumponomics’ with policies that benefit the rich.

Labor leader Bill Shorten during question time yesterday.

Bill Shorten has escalated attacks ­on the government’s proposed corporate tax cuts, accusing Malcolm Turnbull of trying to replicate “Trumponomics” with policies that benefit the rich.

The Opposition Leader said the Prime Minister was “inept” if he believed Australia should follow the American path of “trickle-down economics”, prompting a swift retort from Foreign Minister Julie Bishop, who declared a Shorten government would damage Australia’s relationship with its most important ally.

The Prime Minister’s Office released an analysis of Labor’s commitments to date, showing a “tax hit on every Australian, in every state and territory”.

The analysis said “every man, woman and child” would pay their share of $164 billion in Labor tax hikes — or about $6000 per person. But the calculations evenly distribute the impact of Labor’s already announced tax changes, which are targeted at higher income earners and investors.

Mr Shorten revved up his caucus yesterday with a claim that Mr Turnbull, who returned from the US on Monday, wanted to emulate the policies of Donald Trump. “Malcolm Turnbull has had a giddy time in America catching up with President Trump and seems to be quite taken by Trumponomics. He met Donald Trump and was so excited about corporate tax cuts he said ‘we must go down the American path, we must follow President Trump’s lead’,” Mr Shorten said.

“While there are many things to admire about the US, we do not want an American-style wages system in this country, we do not want an American-style healthcare system and we do not want an American tax system.”

Ms Bishop told the Coalition partyroom Mr Shorten, who called Mr Trump “barking mad” during the US election campaign, would damage Australia-US ­relations if he was elected to government. She said the government needed to remind the public “every day” of Mr Shorten’s lack of suitability to be prime minister.

The PMO analysis of Labor’s tax commitments includes its promise to abolish negative gearing, and to halve the 50 per cent discount on capital gains tax for assets held for more than one year.

It includes Labor’s pledge to lift the top marginal tax rate to 49.5 per cent — which applies to incomes over $180,000 — to fully fund the National Disability ­Insurance Scheme, and its proposed 30 per cent tax on distributions from trusts.

Labor’s superannuation tax hikes for high earners and limits on tax deductions for the cost of managing tax affairs are also included. “The numbers are very conservative. They do not include Mr Shorten’s higher company taxes, which will mean less investment, lower growth, fewer jobs, and lower wages,” analysis said.