Tax Reform Part of Rebuilding Economy
The last 18 months have been tough for a lot of people in the region with the recession and rising costs of living, but the good news is the economy is starting to grow again.
This year the focus for the National Government is maximising that growth so we have more jobs, better pay and new opportunities. Here in Kapiti and Horowhenua we have more than 25,000 people in fulltime work earning a median income of around $37,000. The constant challenge for our region is having enough decent local jobs so that our young people don’t have to head across the ditch to Australia to get financially ahead.
This is why the Government has a major programme of cutting red tape, investing in new roads, a smart infrastructure programme, getting better value from public services and fixing our tax system.
I’m glad to see the report by the Tax Working Group has raised a lot of important issues for the economy. The report says our tax system is heavily geared towards taxes on wage earners and companies which restricts our growth. The working group has suggested some practical options that will need to be debated by cabinet and caucus before the Budget is delivered in May this year.
We need a fair tax system that rewards hard work and helps families get ahead. It’s clear from the report that we can do better in this respect and tidy up loop holes that some have chosen to exploit.
As the economy begins to improve under the National Government I hope we can bring in a tax system that provides the right incentives to reward effort.
Lower taxes and higher wages have flow on benefits for our 16,000 retired people locally, as the pension is linked to the average wage.
This year will continue to have a few challenges, but if we want a positive step change in our economy then some bold changes will need to be made.