Given S & P recently put NZ on a credit watch negative suggestions are arising that we need to trim our budget deficits.
Several changes have been mooted this morning by John Whitehead in this NZ Herald article.
Whitehead said tax was one of a number of important policy areas. Although the company tax rate was reduced to 28 per cent in the Budget, it was not low by international standards.
The Savings Working Group was looking at a range of options for reforming capital taxation as a means of promoting savings and investment.
“And, as you are probably already aware, the Treasury has previously explored the introduction of a capital gains tax as a means of removing significant distortions from the tax system.”
Is anyone else confused? in an article about reducing the deficit he is discussing cutting the corporate tax rate.
28% represents a move in the right direction, especially as it is lower than Australia at 30%.
If we were to reduce it to 25% over the next 5 years or so then we would be able to convince Companies to move from Australia to NZ, becoming the finance hub John Key wants us to be.