Bludging is rampant in NZ society.
But it is corporate bludging that is most outrageous.
And it is costing us a pretty penny. The Taxpayers’ Union has released a new report into corporate welfare and bludging.
The Taxpayersâ€™ Union has launched new a report,Â Monopoly Money, which examines the cost and case for New Zealandâ€™s extensive corporate welfare programmes. The report followsÂ recent comments by TradeMe founder Sam Morgan, who questioned the Governmentâ€™s corporate welfare programme, despite having been involved inÂ companies that have received grants in the past.
The report, which examines the cost of corporate welfare examines government spending since theÂ 2007/2008 budget, shows:
- Since National took office, corporate welfare has costÂ taxpayersÂ $1-1.4 billion ($600 – $800 per household)Â per year
- If corporate welfare was abolished, enough money would be saved to reduce the corporate tax rate from 28% to 22.5%
- If applied to personal income tax rates, the saving would allow the 30% and 33% income tax rates to be lowered to 29%
- Alternatively, the 10.5% rate (applicable to the first $14,000 of income) could be reduced to 7%. Â Â Read more »