Promising tax talk

The Herald reports:

The budget will be delivered on May 20 but New Zealanders may get a better idea about the Government’s plans for the tax system next week, Finance Minister Bill English said today.

He said his second budget would focus on improving the economy, getting the Government’s books back in shape and could also address changes to the tax system.

Mr English said Prime Minister John Key would outline the Government’s thinking on tax reform when he opened the parliamentary year on Tuesday. …

“The prime minister will give some indications of direction next week… You do not get too many opportunities to reshape the tax system and right now with the economic challenges we face, tax is a potentially important lever to get our economy focused on earning more than we spend.”

Mr Key also said his opening speech to Parliament would be a quite detailed “shopping list of the economic agenda.”

Mr English today expressed concern that by the end of the decade the average income would be at the top tax rate.

It is pleasing to see a strong focus on economic issues, and the indications are that the Government is not going to settle for the status quo with the tax system.