Business Tax Review—Expected Outcome

John Key Link to this

Is the Minister’s business tax review considering a cut to the corporate tax rate, together with the introduction of a payroll tax; if so, what does he consider will be the benefits of that scheme?

John Key Link to this

Can the Minister recall that at his request in 2004 Treasury calculated that to cut the company tax rate to 20 percent, with no loss of revenue to the Crown, would require the introduction of a payroll tax of 5.4 percent; if so, does he find such a concept appealing?

John Key Link to this

Is an objective of the Minister’s business tax review that proposals be revenue-neutral; if not, how large does he envisage the impact will be on the Crown accounts?

John Key Link to this

Did the Minister’s statement to the Finance and Expenditure Committee a few weeks ago that some of the options being considered by the review may prove to be “too big and too bold for a wide variety of stakeholders, including officials” indicate that the payroll tax scheme he is working on is his own idea, and that others will have trouble accepting it?

Hon Peter Dunne Link to this

Does the Minister also recall seeing a statement that said: “we are not persuaded that reducing this tax”—that is, company tax—“… would have any materially beneficial effect on growth,”; and is he surprised to know that that came from the National Party’s 2004 economic policy position paper?