Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Credits for Investment Beats Tax Cut for Co's

CTU MEDIA RELEASE
25 July 2006

Tax Credits for Investment Better Than a Tax Cut for Companies – CTU.


The Council of Trade Unions says that tax credits for investment in research and development, skills, and market development as well as higher rates of depreciation would be more helpful in increasing productivity than simply reducing headline company tax rates.

He was responding to the review of business taxation announced this afternoon.

“A 3 cent cut in company tax costing $540 million could simply add to the retained earnings and dividends of overseas owned companies operating in New Zealand,” CTU president Ross Wilson said.

“In the last year, $7.5 billion of our current account deficit was due to the profits of overseas companies and poor decisions in the Business Tax Review could add to this problem.”

“However a tax credit which could be applied to investment in skills would help our transformation to a modern economy. A high wage, high skill economy needs investment in people, skills and modern technology and that is what the Business Tax Review should be about.”

The CTU also warned that expensive tax cuts could jeopardise public expenditure on education, health and infrastructure.

Ross Wilson said that we should not lose sight of the fact that the revenue Government gets from company tax is not just about the tax rate. “For instance, company tax revenue increased from $4.8 billion in 2000 to $8.5 billion in 2005 because of a strong economy and high profits, not because of a higher tax rate,” he said.

The CTU would be consulting its affiliates and encouraging debate among union members, and making a submission on the Business Tax Review.

ENDS

© 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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news