As the government pushes legislation for a huge tax cut for multinationals to a vote in the Senate and prominent business leaders wander through Parliament House demanding support, the US Congressional Budget Office has demolished claims that Australia's company tax rates are uncompetitive.

The non-partisan CBO earlier this month released a report International Comparisons of Corporate Income Tax Rates, with the Trump administration flagging its intention to seek cuts to US corporate tax rates. The report examines headline, average and effective tax rates in G20 countries. The report shows that, in the comparison year 2012, Australia had the fourth-lowest average company tax rate in the G20, at 17%. The average rate is calculated "as the total amount of corporate income taxes that companies pay relative to their income". According to the report, "the advantage of using the average corporate tax rate to evaluate investment incentives is that it can capture features of the tax code that are missed both by the top statutory corporate tax rate and by the effective marginal corporate tax rate".