Media release

ACT Leader Dr Jamie Whyte

Greens Promote Crony Capitalism

The Greens plan to give $1 billion to companies if they for it research and development (R&D).

This reminded me of the quip attributed to the U.S. Senator Everett Dirkson, “a billion here, a billion there, pretty soon you’re talking serious money”.

New Zealand is a small country. A billion is serious money all on its own. In fact, each billion of annual government spending adds 4 percentage points to the company tax rate

The Greens really plan to increase spending by $500 million a year (the billion they boast of is spent over the first three years). This means they would make the company tax rate 2 percentage points higher than it otherwise needs to be. Individual companies would then get their hands on taxes paid by other companies if they can convince Green politicians or their appointed bureaucrats that they are good children and deserve an R&D grant. I foresee some very nice lunches for the “experts” the Greens will appoint to dispense this $1 billion.

Next time the Greens complain about crony capitalism, I hope everyone will enjoy a jolly good laugh, even if they miss out on a jolly good lunch at the taxpayers’ expense.

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