Responding to New Zealand First’s proposal for 50 percent accelerated depreciation for manufacturing and export industries, Taxpayers’ Union Head of Policy James Ross said:
“New Zealand First have clocked the right problem. Weak business investment and anaemic labour productivity growth are a lead weight holding back New Zealand’s economy.”
“Credit where it’s due for taking a step towards a meaningful solution. But why add complexity to the tax system by trying to pick winners and losers? A productive investment is a productive investment, regardless of industry.”
“The evidence that full capital expensing is the single best bang-for-buck pro-growth tax reform is overwhelming. New Zealand First would be better off scrapping its plans for a progressive company tax system and getting fully behind 100 percent capital expensing. Why settle for two half-measures when we already know what works?”
New Zealand First right on investment, wrong on picking winners
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