2. SHANE JONES (Labour) Link to this
to the Minister of Finance
What reports, if any, has he received on the proposals for research and development tax credits included in the business tax review?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
I have received positive feedback on the proposals from a wide range of sources, especially those involved in research and development. For example, nearly two-thirds of submitters on the business tax review supported the research and development credits.
Hon Dr MICHAEL CULLEN Link to this
I received two quite contradictory reports. One report argued strongly for better write-off research and development spending in the purchase of plant and equipment. The second report opposed the use of tax incentives altogether in this area. The first report was from the new National leader, and the second was from the new finance spokesperson, Bill English—contradiction No. 1 for the day.
R Doug WoolertonCan the Minister confirm that aside from the business tax review being New Zealand First’s policy, it, together with moves to incentivise productivity, research, and development through tax credits, forms part of the confidence and supply agreement between New Zealand First and Labour?
Hon Dr MICHAEL CULLEN Link to this
I can confirm that the business tax review is part of that confidence and supply agreement and the confidence and supply agreement with United Future, and I have great confidence that Mr Dunne will supply some answers.
Has the Minister received any reports of different views on the correlation between tax cuts and economic growth?
Hon Dr MICHAEL CULLEN Link to this
I have received two reports. The first report notes that tax cuts are “central to our growth strategy”. The second report expressed doubts about the link between tax cuts and economic growth, stating: “I don’t think tax cuts are a magic bullet. There is no magic link between one and the other.” The first report came from the leader of the National Party, and the second came from the deputy leader of the National Party—contradiction No. 2 for today. Unfortunately, Mr English has not put down a question to me, so I cannot find contradiction No. 3 just yet.