Government's own advisors call for Tax Cuts

[Imported from Whale Oil Beef Hooked on Blogger]

From TVNZ

In its briefing to the incoming government Treasury is calling for cuts to personal and corporate tax.

The briefing comes just a week after the government ruled out “significant tax cuts” in its three-year programme.

In the papers Treasury recommends reducing both the 39 and 33 cent personal tax rates, saying high personal tax rates create disincentives to people making the most of their talents and opportunities.

It says the company tax rate should be reduced because high corporate tax rates discourage investment.

Cullen is now in a quandry, the majority of MP’s supported tax cuts prior to the election and now the government’s own advisors say cut, cut, cut.

John Key is ebullient.

National Party finance spokesman John Key says the Treasury briefing supports many of its policies and shows Labour is “out of touch and out of date.”

“These papers show that Labour’s old-fashioned ideological opposition to meaningful tax reform is holding our economy back,” says Key.

 


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