"Michael Cullen’s amendments to the Income Tax Act are but a minuscule step in the right direction", says Libertarianz Finance Spokesman, Tim Sturm.

"The move to the use of standard accounting measures for the treatment of R&D expenses and the simplification of interest deductibility rules will, it is true, reduce the accounting and compliance burden on firms," he says.

"However these are trifling moves in relation to the total burden on the economy through taxation," Sturm says. "The amount of economic wealth wasted from the direct administrative burden of taxation, and from individuals being forced to shift resources around to minimise the amount of tax extorted from them, is enormous."

"Libertarianz opposes government extortion through taxation and advocates that all payments to government should be voluntary. The proper functions of government consistent with the right of individuals to freedom from the initiation of force - defence, police and the legal system - amounts to just 7% of current government expenditure. Given that this is commensurate with the amount New Zealanders voluntarily spend on insurance for similar reasons, I suggest," says Sturm, "that this is eminently feasible."

Libertarianz submission on tax to the current wider Tax Review can be found at http://www.taxreview2001.govt.nz/Submissions/Libertarianzparty.pdf

ENDS

For more information contact:

Tim Sturm LIBERTARIANZ FINANCE SPOKESMAN e-mail: sturm_tim@hotmail.com

Libertarianz Media Coordinator: (025) 861 927, organon@ihug.co.nz

www.libertarianz.org.nz

© Scoop Media