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Sustain and lift growth by cutting company tax

Sustain and lift growth by cutting company tax rate

If Government wants to sustain and increase the present rate of growth it will move now to drop the company tax rate, the Employers & Manufacturers Association (Northern) says.

"Government's fiscal wisdom is on watch with today's announcement of its projected surplus of $3.5 billion," said Alasdair Thompson. EMA's chief executive.

"Like Joseph, Chancellor of the Egyptian Exchequer several thousand years ago BC, Dr Cullen should use the present 'seven years of plenty' as a foundation for higher levels of growth.

"Merely banking the money is a poor decision given our economy is projected to grow at only three per cent a year in perpetuity.

"We need it invested for better growth than that or we'll never return to the top half of the OECD, which is Government's own goal and ours.

"Right now Government has about 100 regulatory type Bills ready to heap more compliance costs on business, not one of which promotes growth. They're crippling New Zealand's business competitiveness.

"Though cutting the company tax rate would not cost Government much if anything, it would underpin investment-led growth to sustain higher spending on education, health, welfare and the environment.

"Not only would companies retain more of their earnings to invest further in their own business growth, but more higher paying jobs would be created."

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