New Zealand’s Dire Productivity Shows Need For Fresh Thinking
Yesterday, the UK announced that it would be making changes which allow businesses to deduct capital investment in plant and machinery investment against their corporate tax bill permanent.
Research by the Centre for Policy Studies suggests this will result in a 1.5% increase in investment, a 0.9% increase in GDP and a 0.8% increase in wages.
Commenting on this update, Taxpayers’ Union Policy Adviser, James Ross, said:
“New Zealand has among the lowest productivity in the developed world. The result is that hardworking New Zealanders have seen their wages stifled and Kiwi families get relatively poorer with every passing year.
“Our anti-business tax rules at the moment send would-be investors running for the hills, meaning less investment in new technologies and machinery. Is it really any wonder that our living standards keep falling further and further?
“If the incoming Government is serious about closing the wage gap with Australia, then we desperately need to inject some life into our limping economy. Full expensing of capital investment is a surefire way to make that happen.”