Grant’s gaming gamble is corporate welfare for well connected friends
The Taxpayers’ Union has condemned the Government’s decision to allocate $160 million in rebates to the gaming sector over the next four years – calling it ‘corporate welfare’.
Taxpayers’ Union Campaigns Manager, Callum Purves, said:
“It was quite incredible to watch the gaming sector lobbyists in the budget lock up celebrate the ‘win’ for their wealthy clients. Gaming, now joins the film industry as an exalted industry that somehow justifies special treatment with politicians taxing ordinary Kiwis more to fund corporate welfare schemes.
“Corporate welfare to help ‘grow’ an industry is a false economy. Just like film, these companies get addicted to the rebates and subsides. Even if the industry grows, so too does the subsidy.
“Rather than pick winners, a far better economic strategy would be to slash the subsides for gaming and film and deliver every business and entrepreneur tax relief. Maybe then our company tax rate wouldn’t be among the highest in the world.”
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