Officials supporting the jobs summit could circulate copies of KPMG’s 2008 comparative report on effective corporate tax rates:
According to the KPMG report:
"…the most remarkable result of our 2008 survey is that we have found no country anywhere that has raised its rate since last year. The global average is, once again, down nearly a full point to 25.9 percent with the EU average down to 23.2 percent, the Latin American rate down half a point to 26.6 percent, and the Asia Pacific rate down 0.8 percent to 28.4 percent."
So we are above average for our region and our region has the highest average rates in the world. That is even more troubling when our region includes stagnant Japan at over 40%. The US at 40% is also pulling up averages.
Of the 106 countries surveyed, only The United Arab Emirates (55 percent), Kuwait (55 percent), and Japan (40.69 percent) impose a higher corporate tax rate than the combined rate of 40 percent in the U.S"
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I understand that you have a jobs summit coming up this week to address concerns about the economy and the current economic climate.
My suggestion is … Immigration. If we were to increase the number of people coming to Live/stay this would boost the economy. This would need to be managed better though.
I see that we currently allow 1,000 people from Argentina here each year on a working holiday program. This year the allowance was reached in 3 days. If we were to increase this number it would be a real short term boost and seize the opportunity of current demand of people wanting to come here. But i do say it needs to be better managed.
Having an increase of people from many countries would also balance the potential racial complaints from current New Zealanders.
Part of New Zealand’s growth in recent years has been because of strong migration, this should be increased, it is also a long term problem with New Zealand not having enough workers to support the number of people who will retire in the years to come.
Cheers Bruce Thomson