Business Tax Breaks Will Lead To Spending Shortfalls
Finance Minister Michael Cullen outlines a grab bag of proposed corporate tax cuts to the assembled media in the
Beehive Theatrette - 25 July 2006
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This afternoon Finance Minister Michael Cullen told the media that while a Labour Government will not cut existing
spending or programs to pay for corporate tax cuts other projects may have to be deferred to compensate for the revenue
that will be lost.
Dr Cullen quipped that he "looked forward to Bob Geldof returning" in relation to questions of where spending may have
to be deferred.
This was presumably in relation to the one time Boomtown Rat, who disliked Mondays', criticism of the Government's allegedly parsimonious overseas aid budget.
The desire to give businesses a tax break was according to a Government press release aimed at "improving the ability of
business to grow and compete in the global economy."
Another reason behind the desire of the Labour led Government to look at options of bestowing corporate tax cuts at the
expense of other projects was based on 'confidence and supply agreements with United Future and New Zealand First.'
Revenue Minister Peter Dunne - a man committed to corporate tax reduction in a commonsense manner
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Fronting a press conference to explain a number of hypothetical options for tax breaks this afternoon along with Dr
Cullen was United Future Leader and Revenue Minister Peter Dunne.
The issue of whether or not personal tax reductions would follow Government largesse to the business community was also
canvassed.
In 1999 the business tax rate and the top personal tax rate were the same however after the Labour Alliance Government
took power it raised the top personal tax rate to 39 cents in the dollar while leaving the business tax rate unchanged
at 33 cents in the dollar.
Listen to Dr Cullen and Peter Dunne outline the hypothetical goodies on offer to the business community
Click here to download file (mp3)
ENDS