Progressive company tax would be a nightmare

14 MARCH 2018

The New Zealand Taxpayers’ Union is alarmed that the Tax Working Group is floating a progressive company tax.

Taxpayers’ Union Executive Director Jordan Williams says, “Sir Michael Cullen has floated opening the same loophole that Australia is finally closing."

"Having multiple tax rates might benefit tax lawyers, but it presents administrative costs and perverse incentives to growing businesses. It would reward unprofitable start-ups while punishing businesses that hundreds of thousands of workers rely on for employment.”

“We currently have a fairly simple tax system – let’s keep it that way. If lower tax is good enough for small businesses, it’s good enough for all businesses.”

ENDS

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