Are tax cuts affordable?

30 August 2005

Are tax cuts affordable?

Business NZ will contribute to the debate on tax this Thursday, with the launch of Tax Perspectives, a publication based on the surveyed views of member companies.

Tax Perspectives calculates the affordability of lowering and flattening tax rates over a period of five years from the present.

Business NZ Chief Executive Phil O'Reilly says the publication sets out to answer four questions:

1. Is it feasible to restrict govt spending to less than 30% of GDP? 2. Would the savings be enough to allow personal rates to be cut? 3. Would it allow a flattening to just two rates of personal tax? 4. Would the savings be enough to reduce company tax to 30%?

"Surveys of member companies show overwhelmingly that business wants lower company tax and lower, flatter personal tax rates.

"Our economists set out to discover ways in which this might be achieved through slowing the rate of increase of government spending, and these are set out in Tax Perspectives.

"Business NZ hopes to add constructively to the debate on tax with this publication.," Mr O'Reilly said.

Tax Perspectives will be launched at: 12 noon Thursday 1 September Lambton Room 1, Hotel InterContinental, cnr Grey & Featherston St, Wellington Light refreshment to follow

ENDS

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