Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Tax reductions achievable

Media release
1 September 2005

Tax reductions achievable

Lower company and personal taxes would be good for the economy, Business NZ Chief Executive Phil O'Reilly said today.

He was launching Tax Perspectives, an analysis of how reduced taxes would be achievable through constraining the rate of increase in government spending.

"Tax Perspectives does not endorse any political party's platform, but provides a practical example of how tax reductions could be achieved. Business has been calling for lower tax for 20 or more years, and this publication sets out the calculations showing how it could be done."

Mr O'Reilly said capping government spending at 30% of GDP could be achieved within five years, and that would allow lower personal and company tax rates.

"This sort of cap would be a relatively mild measure that would not diminish services like health, education or welfare. It would still allow 3.1% annual growth in nominal spending. Yet it would achieve savings of $21 billion over five years, easily paying for tax cuts."

Mr O'Reilly said the calculations in Tax Perspectives did not take into account the stimulus that tax reduction would provide to the economy. "Given the likely boost to growth the reductions would spark, it is conceivable that the $21 billion savings could be achieved even sooner."

He said Tax Perspectives was designed as a constructive addition to the debate on tax.

Tax Perspectives is on www.businessnz.org.nz.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news