We’re in a tax war, Bill
We’re in a tax war, Bill
The fact that company tax cuts are not a ‘panacea’ is no excuse to abandon the idea, says ACT Leader David Seymour.
“No, cutting company tax is not a cure-all. But as other countries cut their tax rates, it’s a bare minimum to allow New Zealand to remain competitive.
“Australia and the UK are both cutting company tax rates. Donald Trump has essentially declared a tax war to bring business to the US. If New Zealand wants to keep business operating here, let alone attract new business from overseas, we can’t continue to have the fourth highest corporate tax rate in the OECD (as a proportion of GDP).
“Business groups wouldn’t bother protesting our high company tax rate if it wasn’t a major barrier to their success. And when businesses keep more of the money they earn, they can grow, lower prices, and pay people more, making us all better off.
“And company tax cuts are affordable. ACT has already shown how we could cut the rate from 28% to 25% just by winding back corporate welfare. Surely it’s fairer to simply cut taxes for all businesses instead of handing out fat subsidies to a favoured few?”
ENDS