Craig Stobo.Photography/Paul Escort
More than half, 54%, of business leaders surveyed in this year’s Board Moods believe corporate tax rates are uncompetitive in attracting foreign investment.
A third of respondents, 38%, say they are not worried, and 8% are not sure.
“At first glance, 28% is too high. But there is only a single tax on corporate profits, rather than the double taxation that is common in many other countries,” said the financial sector chairman.
New Zealand’s overall corporate tax rate is 28%, higher than the global average of 25.2%. This is significantly higher than her 19% in the UK and her EU average of 21%. Closer to home in Australia, most businesses have moved to pay 25% corporate tax.
Nearly two-thirds of survey respondents, 64%, believe the government should consider phasing down the combined corporate tax rate to 25% by 2027.
This will ensure that your corporate tax is aligned with the Australian tax rate. About 22% don’t want it and 14% aren’t sure.
Phased cuts are endorsed by airline industry CEOs. he commented:
The executive chair of the fund manager said the move would not help domestic companies, saying, “Our tax rate is effectively the top of the personal tax rate.”
Professional Director Craig Stobo wants the government to consider the idea, but says it shouldn’t be done in isolation from other tax rates, including personal, trust and PIE rates. he is not alone. Energy sector CEOs say any change should be part of a broader look at taxes and how they work. A business owner wants to see “a better strategy, not a one-off solution,” the business owner said.
labor tax policy
There is some consensus on government tax policies that affect the real estate and housing markets. Beyond that sector, support for the initiative is lukewarm at best.
The most popular property-focused policy is the exemption that build-to-rent investors get from interest deduction rules. This was announced earlier this year by Housing Minister Megan Woods. About a third of respondents, 63% who are 2, say they support the plan to some extent, while 20% do not support it at all.
Survey responses were similar for the historic 10-year build-to-rent exemption, with 23% of respondents not supporting the policy. And she is fully supported by 12%.
A quarter of respondents, 26%, are unsure about the proposed homeless quarantine rule, and 29% do not support it.
Last year, the government announced that it would extend the brightline test of taxation on disposal of residential land to 10 years.
The initial test established by the previous government was for two years, but was later extended to five years.
More than a third (37%) of survey respondents said they were not in favor of an extension. About the same number showed reasonable support (18%) or full support (17%), with 25% stating some support for the measure.
The CEO of the real estate business said, “Brightline is a test. It doesn’t necessarily mean capital gains will be taxed.
“If there is evidence of the transaction, it is okay for these transactions to be investigated and capital gains patterns taxed.”
Recent legislation restricting interest deductions on investments in residential property that can be used for long-term accommodation is not popular with New Zealand business leaders. 45% say they don’t support the move.
A director of a food and beverage company explained the general property tax efforts:
Professional directors say they want a simple capital gains tax, and a bank CEO said:
Red Shield CEO Fabian Partigliani said:
There is little enthusiasm on the US board about leaving the top marginal income tax rate at 39%. This rate is for high-income earners with an annual income of $180,000 or more. Nearly half (48%) of those surveyed said they did not support the policy, and only 11% said they fully supported it.
Foodstuffs North Island CEO Chris Quin said: “.
The government’s plans for various asset disclosure initiatives are not supported by nearly half (47%) of the business leaders surveyed, with one director describing the move: Another director said, “Wealth projects are misguided and only lead to wealthy individuals holding their assets abroad.”
The government’s planned social unemployment insurance scheme is unpopular, with more than half (62%) of survey respondents saying they do not support the plan. Only 19% said they supported it.
The energy chief took another look at Labor’s tax policy. We should raise the consumption tax.”
greens tax system
The Green Party’s tax policy was not popular with survey respondents. Nearly 90% say they don’t support the idea of imposing a wealth tax on net worths above $1 million.
When asked whether they supported a wealth tax as a way to expand the tax base, respondents were split 80:20 against the idea. Of those who disagreed with the idea, 41% were generally against it, 8% said “the financial situation does not require such measures” and 31% said “mostly symbolic and It doesn’t really address wealth inequality.”
The chairman of the New Zealand Initiative, Roger Partridge, has warned that “the wealth tax proposed by the Greens will lead to capital flight. This is the last thing New Zealand needs.” Two respondents commented that a capital gains tax would be preferable, while the other two said an inheritance or death tax would be a better option.
More than 9 in 10 business leaders say they disapprove of the Green Party’s idea of introducing a top personal tax rate of 42% for those earning more than $150,000. Some suggest that the $150,000 threshold is too low. “Their policies aren’t aiming high enough. They should tax the ultra-rich, not hard-working New Zealanders,” said the telecoms chief executive.
national tax system
National’s plan to index the personal tax rate has the full support of 42% of survey respondents, with 41% saying it has reasonable support. Only 2% of people disagree. There is not much enthusiasm for the opposition’s idea of eliminating most of Labor’s property-related taxes. A third of the respondents, 34%, fully support the plan, while one cent does not.
Opinions were split on the proposal to abolish the 39% tax rate, with 41% of the sample saying they fully supported it, and 23% saying they did not support the plan. “A 39% cut may be politically difficult to sell. I think a tax cut for the pure middle class would probably be better,” said one technology company chairman.
Two-thirds of business leaders, 62%, say their level of concern about wealth inequality has increased after the response to quantitative easing and monetary policy has in turn boosted the value of many assets. . A third, 35%, say they have the same level of concern as before. A company director said, “This government is ironically increasing wealth inequality. They don’t know what they’re doing.”
Seven out of 10 New Zealand business leaders believe that the government’s primary role in tackling wealth inequality should be through ‘ensuring adequate minimum levels of welfare and income’. increase. In other words, it strengthens the safety net. About 13% of those who answered this question believe that taxing wealth and assets in addition to income is the answer. No one believes that taxing income tax at a level above he 39% is a viable option.
“Focus on economic growth and job growth that will boost your income,” says a food industry CEO. Infrastructure bosses have similar comments suggesting the government is focused on “building a competitive economy and boosting productivity.” Foodstuffs North Island CEO Chris Quin said: