Taxpayers’ Union is slamming Labour’s plan to axe
Investment Boost, warning it would discourage business
investment and make New Zealand’s productivity crisis even
worse.
Taxpayers’ Union spokesman James Ross
said:
“New Zealand’s stagnant productivity is the
rot behind our squeezed wages, weak growth, and increasingly
unaffordable superannuation, healthcare, and other public
services.”
“Labour productivity growth has
averaged barely 0.2 percent a year since 2019. Businesses
cannot boom when governments make it more costly to invest
in machinery, tools, and technology.”
“Before
Investment Boost, New Zealand had the second-worst
capital-recovery settings in the OECD. When businesses have
to wait years to deduct the full cost of an investment, the
country become less attractive and capital goes elsewhere.
That’s what Labour want to take us back
to.”
“Investment Boost was never ambitious enough,
but Labour are moving in exactly the wrong direction by
punishing companies for investing in
themselves.”
“Full capital expensing is the single
best bang-for-buck productivity boost. Scrapping even a
partial version is madness.”
The Taxpayers’ Union’s
report ‘Going for Growth: Full Capital Expensing’ can
be found at www.taxpayers.org.nz/full_expensing_mr
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