Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Call for cut in the corporate tax rate continued

Media Statement
For immediate release

Wednesday 19 November, 2003

Copeland continues to call for cut in the corporate tax rate

United Future revenue spokesperson Gordon Copeland is continuing to urge the Government to cut the corporate tax rate from 33% to 30%.

“In this regard our policy is in line with that of the National Party,” he says.

“National has stated that their reason for proposing this is to bring the New Zealand corporate tax rate into line with that of Australia. Although I agree with that, there are two additional reasons why United Future believes that the rate should be cut.

“The first of these has to do with the cost of capital. Investors assess their cost of capital after tax and accordingly any reduction in the corporate tax rate will automatically lead to a reduction in the cost of capital, i.e. the investment return which, allowing for the risk concerned, people will want to reactive if they invest in that particular industry or company.

“Because interest rates in New Zealand are among the highest in the world and the 33% rate is above that of Australia, the cost of capital in New Zealand is higher than it needs to be. In simple terms, that means that international investors will be attracted to Australia instead of New Zealand because the tax paid on a company’s earnings are lower.

“In addition the 30% rate creates a positive incentive for New Zealanders to retain earnings within businesses rather than withdraw them by way of dividends. This is because the personal tax rate is 39% so at 30% rather than the present 33% an additional incentive is created to build the capital base of the business.

“This in turn creates jobs and provides an important stimulus to economic growth.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news