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Make Tax Really Easy

Make Tax Really Easy

ACT Leader Richard Prebble said the Labour government should stop fiddling on the issue of tax on small business.

"The real reason that tax on small business is difficult is because government takes so much.

"With the top rate of income tax of 39 percent, company tax at 33 percent, GST at 12.5 percent, and rates rising faster than inflation, small businesses are being squeezed.

"What would make tax easy is a low flat rate of tax.

"Just lowering company tax rates below Australia's would be a start," said Mr Prebble.

"The changes themselves are of little assistance. Most small businesses do not use payroll agents and it is hard to see why such agents should be subsidised.

"Most small businesses are paying far more than 6.7 percent cost of living, so paying early is no advantage. Paying provisional tax in instalments is also of little benefit.

As the government itself concedes, many of their proposals will result in more costs for some businesses," Mr Prebble said.

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