Brian Gaynor, the Weekend Herald’s business commentator, nails it in last week’s column. In assessing the Budget he says it is all too little, too late. “New Zealand is sleep walking to the poor house.” The column echoes my own thoughts about the state we’re in economically. Gaynor makes some startling comparisons with Ireland, namely:
- Ireland has 4.2 million people, and yet is the best OECD performing economy since 1970
- Ireland has the reverse of our tax ystsem: high VAT (GST) and low income and company tax
- yet Ireland has twice the public spending power: $103 billion v NZ at $56 billion
- Ireland will spend $6200 per person on health; NZ will spend $2800
I share Gaynor’s view that the tax system is a critical factor in the reversal of our fortunes. It’s one platform that I believe we as a community of innovators, no as citizens!, need to explore with far more open mindednesss than this current government has. I thought the McLeod review on tax in 2004 was a total disappointment.
Who’s got the best tax system for rewarding innovation, creativity and entrepreneurship? Anyone know?