The Dom Post reports:
Low-income earners would have to be compensated if GST was increased as a result of the current tax review, Finance Minister Bill English says. …
“Low-income earners, in particular, would have to be compensated for any increase in GST,” he said in a speech to chartered accountants in Auckland. “The tax working group will have to come up with some fairly compelling reasons to convince us of the overall benefits of further property-related taxes or an increase in GST.”
“We don’t want to go down the route of raising taxes,” he said. “The Government has a strong preference not to increase taxes to close the deficit. We prefer more efficient taxes over higher taxes.”
Most forms of income should be covered and, where possible, loopholes that allowed income to be sheltered from tax should be closed.
With one of the most mobile workforces among developed countries, New Zealand’s tax system must help attract and retain people, businesses and investment.
I of course agree that spending restraint should be used to close the deficit rather than higher taxes. But a more “efficient” tax system which contributes to higher economic growth is very desirable.Tags: Bill English, GST, tax