Tax Inquiry a Sop

Monday 31st Jul 2000

Owen Jennings

Media Release -- Economy

“This half-million dollar inquiry is the price paid for the support of the Alliance and the Greens. It’s designed to consider amongst other things their proposals for a carbon tax, a financial transactions tax, and a more progressive income tax.

“It’s a waste of money. New Zealand is acknowledged internationally as having one of the best tax structures in the world, Mr Hide said.

“The real issues of concern are the level of the tax take and the administration of the tax structure.

“The IRD recently completed a series of studies that show that jobs and growth would be maximised if the tax take was reduced to 20 to 25 percent of GDP instead of the current 36 percent of GDP. Dr Cullen would do well to study the reports he already has before commissioning new ones.

“The other problem is still the outstanding one of how the IRD treats taxpayers. There has been some improvement since the Finance and Expenditure Select Committee Inquiry last year but the IRD still has a way to go. Dr Cullen has been a total failure in addressing the issues raised by that Inquiry.

“Dr Cullen should save taxpayers half-a-million dollars and a great deal of time by simply telling the Greens and the Alliance that their ideas on tax are barmy and that he won’t have anything to do with them,” Rodney Hide said

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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