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


National's tax policy - boon to foreigners

17 March 2004

Media Statement

Corporate tax cut bonus to foreign investors only

National's newly announced tax policy is a gift to the foreign owners of
New Zealand businesses but offers nothing to the local investor, says
Finance Minister Michael Cullen.

He was commenting on Don Brash's announcement today that a National
government would cut the company tax rate ahead of cuts to the top
personal tax rate.

"The entire benefit would end up in foreign hands because for New Zealand
business owners and shareholders, the company tax is really a withholding
tax which is offset against personal tax. For a foreign owner or
shareholder, it is the final tax paid.

"The effect would be that hundreds of millions of dollars - money now
available for health, education, business assistance and regional
development - would be simply transferred out of the country.

"National will also have to justify, having argued over the last four
years that the company rate needs to be aligned with the top personal
rate, why they now propose to widen the gap. By their own logic, they
were either wrong then or they are wrong now.

"The government is concentrating on other priorities - including relief
for low to middle income families, making work pay and, beyond this year,
encouraging investment in higher productivity and improving work skills.

"Not only will these create a fairer, more inclusive society, they will
also yield a much greater economic return over the longer term," Dr
Cullen said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election