With business investment growth expected to fall from 6.8 percent in 2018 to 0.7 percent in 2019, the Government needs to reconsider its economic strategy, says the New Zealand Taxpayers’ Union.
Taxpayers’ Union Economist, Joe Ascroft, says, “Business investment growth is expected to collapse between 2018 and 2019. While that’s not surprising – businesses have clearly been scared off by plans for a capital gains tax, and regulatory decisions like the oil and gas ban – it does show the Government needs to seriously consider a change in approach.”
“Tax cuts for businesses and individuals would be a great start. The $1 billion spend-up for KiwiRail and the huge forecast increases in social welfare spending demonstrates the Government could easily afford it, but has prioritised politics over sensible economics.”