Reduce company tax by 1% a year?

ACT proposes:

ACT Leader David Seymour is proposing a programme of one per cent per year reductions in the company tax rate.

Company tax would drop by a percentage point each year for eight years, to a target of 20%.

“In Budget 2015, the Government should be signalling continuous improvement in our business environment, and this proposal does that,” said Mr Seymour.

ACT’s proposal would reduce revenue by around $170-180 million each year, which could be funded by a share of existing planned net expenditure growth and the phase-out of existing corporate welfare.

The Government has an allowance of $1 million a year for new initiatives. It should not all go on extra spending, but some should go on tax relief, and this is a modest and affordable proposal.

A company tax rate of 20% would attract more investment to NZ, which means more jobs and more income.