New Zealand Business Tax Rate Killing Investment, Productivity And Wages
New Zealand's corporate tax rate is now one of the highest in the world with the expected passing of a massive reduction in business taxes in the United States, says the New Zealand Taxpayers' Union. It is calling on the Government to put corporate tax cuts at the top of the agenda for the Tax Working Group.
Taxpayers’ Union Economist, Joe Ascroft, said, “Business tax rates are falling globally and New Zealand needs to stay competitive. The US headline corporate rate is scheduled to be slashed from 35% to 21% in the United States, which would put our corporate rate about a third higher than the Americans.”
“Business taxes impact investment decisions of all companies. Greater capital investment is exactly what New Zealand needs to push up our productivity levels, and grow wages. With business confidence now the lowest since the GFC, leaving our tax settings alone would be a huge mistake.”
"For too long New Zealand has rested on the fact that Australia has a very high corporate tax rate. With the United States now taking action, we can't wait much longer."