A new study has indicated that Australia’s tax system for corporations has significant flaws and cannot sustain itself, and is calling for the federal government to adopt changes urgently. According to the research (pdf) published by the Australian National University (ANU) on March 21, the current corporate tax system hampers investments and is skewed toward debt. Furthermore, researchers from the ANU also found that the system had five additional systematic issues, such as a high corporate tax rate and a gap between the corporate tax rates and personal income tax rates. The distortions caused by those problems not only compromise the tax revenue base and the efficiency and fairness of the tax system but also discourage productivity and economic growth. Professor Robert Breunig, the study’s lead author, said that the federal government could fix the system’s flaws by putting an “allowance for corporate equity” in place. This would come in …