Let's introduce a Railtax

act-new-zealand

Thu Apr 09 2015 12:00:00 GMT+1200 (New Zealand Standard Time)

Let's introduce a Railtax

Thursday, 9 April 2015, 12:17 pm
Press Release: ACT New Zealand

April 9, 2015.

The Government’s largesse into rail is so big it deserves its own tax, the Railtax, according to ACT Leader David Seymour.

In response to Bill English’s admission Kiwirail may sink another billion dollars [1], Mr Seymour has called for a very simple transparency measure: a separate tax to pay for it.

“One billion is equivalent to the cost of knocking a percent off the company tax rate for the next four years, so let’s make the government’s choices transparent,” said Mr Seymour.

“Of the 28 per cent company tax rate, New Zealand’s businesses will pay 27 cents on the dollar for company taxes, and one cent for bailing out Kiwirail. We should separate out that one percent and call it the Railtax.

“Who knows, the business community may decide that’s a good deal.

“The Railtax would make it clear as day that if we stopped ploughing money into the nostalgia industry rail has become, we could cut the company tax rate by a whole percentage point.

Mr Seymour says the approach could work for many other large expenditures.

“There are a range of government expenses that just seem to hide in the shadows of the tax system.

“We could have a couple of percent of income tax going towards Superannuation and another percent going towards student loans.

“Any expenditure over a billion should be fair game.”

ENDS

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