Does Act support National's tax increases?
Hon Jim Anderton
Progressive Party leader
17 October 2008
Does Act support National's anti-business tax increases?
With National proposing the largest increases in business tax in New Zealand's history, the acid is on Act to state if it would support National's anti-business plan, Progressive leader Jim Anderton says.
"National is promising to make business pay nearly a billion dollars more over the next three years as a result of new taxes targeted at our most innovative and research-driven companies," Jim Anderton says.
"If National and Act were able to form a government - would Act support National's anti-business tax?
"If Act won't support National's tax increases, then National cannot rely on Act to form a government. It is a central constitutional principle that a government doesn't hold the confidence of the House if it can't pass its tax bills.
"More tax on innovation is exactly what we don't need in these tough global financial conditions. We've just got the tax rate down. National has never cut business tax," Jim Anderton says.
National proposes to axe the 15% tax credit for research and development. This means businesses doing research and development will more than three hundred million dollars a year more tax over the next three years.
The Progressives were first to call for the company tax rate to be cut to 30%. In this term the corporate rate was cut. National has never cut the business tax rate.