Transnational Corporate Tax Shenanigans Need To Stop

It’s official. Many big transnational corporations are not paying their taxes. And the government doesn’t intend to do anything about it.

These corporations inflate the value of the goods and services supplied by their parent company, conveniently located in an offshore low-tax/no-tax haven, to equate to the value of most of their revenue from sales in New Zealand. This is ‘cost of sales’ and can be deducted from the money they make from sales as a business expense. Hey presto, very little ‘profit’. Very little tax to pay. Continue reading

Company Tax Rates, Alliance Style

ACT has thrown company tax rates into the election circus. The reaction from other parties has been muted to say the least. No one seems to know how to respond.

The Alliance Party has never been afraid of controversy. Let’s look at company tax rates, and trust tax rates too for that matter. But let’s look at them from the viewpoint of reducing inequality and increasing the common good, as opposed to enabling companies to increase their profits per se. Continue reading

The App Economy; Can We Make it Work for Everyone?

The fastest growing companies are the ones in the tech/ecommerce industry. It has been described as the ‘app economy’. The app economy gives us great innovations – but it fuels economic inequality.

Ecommerce industries employ fewer people and they often eliminate existing jobs e.g self service checkouts at the supermarkets. But those at the forefront of these industries are rewarded with million or even billion dollar incomes. Thus concentrating wealth in fewer and fewer hands. Continue reading

ACT Policies Tax The Alliance

Voters beware, if the government levies little or no taxes it will have no money. And if the government has no money it can provide no services.

Jamie Whyte’s announcement that ACT will push for a top tax rate of 24% and work towards a flat tax of 17.5% is like a red rag to a bull to the Alliance Party. New Zealand has been there, done that, in the 1980’s. It didn’t work. New Zealand is still counting the cost – entrenched unemployment, low wages, high housing costs, intergenerational poverty and inequality.

Flat tax is, quite simply, the enemy. It is unfair and unjust. It drastically reduces government income to spend on services that benefit everyone. Continue reading

Alliance tax plan would rebuild a civilized New Zealand

The Alliance Party is calling for a major overhaul of New Zealand’s taxation system to assist low to middle income earners, and to pay for free access to high quality public goods including health and education. Continue reading