Tax Policy Programme a Make Work Scheme

Thursday 10 Oct 2002 Richard Prebble Press Releases -- Taxation

The Labour government's tax policy work programme is a make-work scheme, ACT leader Richard Prebble said today.

"First the Labour party puts up the top rate of tax to 39 percent and then employs an army of bureaucrats to try to simplify the complications they have caused," Mr Prebble said.

"The government could very easily simplify the tax system by lowering the top rate of tax to the company rate. Very little revenue is raised from the 39 percent tax rate but the costs and complications are considerable.

"Labour's proposal to change the taxation rates on superannuation is only needed because we have a graduated escalating income tax system.

"If the government really wanted to be business friendly it would move to a low flat rate of tax which ACT has shown is affordable and would give New Zealand businesses a competitive advantage in a global economy," Mr Prebble said.

ENDS

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