ACT Party Wants Taxes Slashed
November 17, 2011 New Zealand Taxation
The ACT Party has called for New Zealand to cut its company tax rate to less than half, and drastically reduce personal taxes.
The ACT Party has launched its campaign for the November elections, with a push towards lowered taxes, reduced government spending, and a slashed corporate income tax rate. The party revealed its major policies at the campaign launch held in Auckland on November 13th.
The key points were delivered by ACT leader Don Brash, in a speech during the launch. He said that one of the party’s primary goals was to drastically cut the corporate tax rate to 12.5 percent. The reduced levy should drive greater investment into the country and allow currently formed businesses to prosper.
The party has continuously campaigned for a 20 percent to personal income tax rate, however, Don Brash now says that the rate would be impossible and ACT would push for a rate of 25 percent.
In order to make the lowered rates a realistic possibility, the government would need to significantly reduce spending. The ACT party proposed that government spending should be tied to the country’s economic performance. To coincide with the spending cut, the government should also drastically reduce bureaucracy.
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