Tax Reform
2007-09-12 13:05:00.0
AUTHOR: Peter Dunne
"It's time to start a real debate about tax reform. Everyone talks about tax reform, but very few people ever spell out precisely what they mean. The last time personal taxes were cut in New Zealand was over a decade ago, under the National/United government. Since then, both National and Labour have put personal taxes up. UnitedFuture's business tax cuts this year are the first cuts in business taxes in almost 20 years. The only times taxes have down in the last decade or so have been when we've had a hand on the tiller.
Now, we're ready to do it again, but let's have a real debate first, rather than just relying on the cheap slogans too many glibly offer. So, here are some questions to consider:
1. Are tax rates more important than tax thresholds?
2. Should GST go up to pay for big personal tax cuts?
3. How progressive should the tax system be?
4. Should government spending be cut to pay for tax cuts, if so, where?
5. What do you think of UnitedFuture's plans to align the top personal tax rate, the company tax rate, and the rate for trusts at 30 cents in the dollar?