Company tax the missing link in Budget debate

The media, Government, and Opposition have done Kiwi businesses a disservice by completely ignoring New Zealand’s onerous company tax rate during debate over Budget 2017.

“Every other party wants to blame businesses for social ills and bash them with new regulations and costs. But ACT believes that businesses are the backbone of our economy, and they deserve tax relief,” says ACT Leader David Seymour.

“All Kiwi businesses, big or small, should keep more of the money they earn, so they can grow, employ new workers, and spend more on innovation.

“Our company tax rate is currently 28%, and as a proportion of GDP, we’ve got the fourth highest corporate tax rate in the OECD. The US, Australia, and the UK are all cutting company tax, making our own rate even less competitive.

“New Zealand needs to be attracting more business and investment, but we’re currently at risk of losing capital overseas. National, which brands itself as a business-friendly party, has failed to cut company tax since 2010 when it had a strong ACT providing majority in Parliament.

“Only ACT is willing to make the case for company tax cuts and only a stronger ACT will force the Government to cut the company tax rate after the election. Company tax should be cut from 28% to 25% immediately, with a long-term plan to cut it even further.

“And funding this tax cut is simple: simply scrap the grants, subsidies and other corporate welfare given to businesses. A tax cut for every business is far fairer than having government pick winners.”

ENDS

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