Latest news with #NewZealandTaxpayers'Union
Scoop
29-05-2025
- Business
- Scoop
Goodbye Budget Vibes, Hello Real-World Value
Press Release – New Zealand Taxpayers' Union Loneliness, housing quality, and happiness all matter, but trying to legislate for the vibe was never going to work. Real wellbeing comes from more opportunities in an economy with low inflation, stable debt, and rising incomes that let Kiwis … Responding to the announcement of the plan to repeal of Labour's 'wellbeing' provisions in the Public Finance Act, Taxpayers' Union Spokesman James Ross said: 'Finally, the Minister of Finance is free to focus what they can actually control — balancing the books, bringing down debt, and restoring the economy.' 'Loneliness, housing quality, and happiness all matter, but trying to legislate for 'the vibe' was never going to work. Real wellbeing comes from more opportunities in an economy with low inflation, stable debt, and rising incomes that let Kiwis afford the services and lifestyle they need to thrive.' 'What did the last Government's 'wellbeing' obsession give us? He chased the outcomes without doing the groundwork, turning surpluses into runaway deficits, tripling government debt, and letting inflation rip. It's time to turn the page on his failed experiment and let the Finance Minister focus on the figures, not just the feelings.'
Scoop
22-05-2025
- Business
- Scoop
‘We're Going To Need A Bigger Debt Clock' – No Plan For Tackling Runaway Debt
Press Release – New Zealand Taxpayers' Union Grant Robertsons last Budget had debt peak at 39.3 percent of the economy Nicola Willis will now see it reach 46.0 percent. This is in the danger zone for a small trade-exposed country like New Zealand, Taxpayers Union Spokesman James … Commenting on Budget 2025's failure to restrain New Zealand's runaway Government debt, Taxpayers' Union Spokesman James Ross said: 'Debt is increasing every single year over the forecast period in Budget 2025, reaching $108,700 per household by 2029. That's $2,000 more than the last forecasts issued just five months ago.' 'Grant Robertson's last Budget had debt peak at 39.3 percent of the economy – Nicola Willis will now see it reach 46.0 percent. This is in the danger zone for a small trade-exposed country like New Zealand.' 'A Government preaching responsibility is lumbering each household with $5,776 per year in interest costs by 2027. That's more than the budgets for primary schools, secondary schools, and the police combined.' 'Nicola Willis was elected with the promise of fixing the country's finances, but what she's delivered today is a promise to keep robbing our kids and grandkids.'
Scoop
22-05-2025
- Business
- Scoop
The Fudge Formerly Known As The Growth Budget
The New Zealand Taxpayers' Union is slamming Budget 2025 as a waste of time and hype, with its team of analysts in this year's Budget left asking 'is that it?' "Nicola Willis has failed,' says Taxpayers' Union Spokesman Jordan Williams. 'This Budget could easily have been delivered by Grant Robertson." 'Willis promised to tackle the last Government's 'addiction to spending'. Spending is going up as a proportion of the economy in this year's Budget compared to the current year. Core Crown Expenses are forecast to be 32.9 percent in 2025/26 compared to 31.8 percent under Robertson in 2022/23. 'She promised to balance the books. The OBEGAL never gets into surplus according to Treasury forecasts. Willis has had to make up a new measure to exclude the ACC deficit to create an illusion of a laughably small surplus in 2029.' 'And she promised growth. But the headline measure – an accelerated depreciation regime – is basically no better than what the last Labour Government tried immediately after COVID.' 'According to the Budget documents, the Government's headline 'growth' policy adds just 1 percent to GDP over 20 years. It is laughable in its small size.' 'More spending, more debt, and nothing to materially shift the dial and grow the economy. It's not a Growth Budget, it's a fudge-it.
Scoop
19-05-2025
- Business
- Scoop
Q&A On Full Capital Expensing: Taxpayers' Union Urges Government To Adopt Policy In Budget 2025
Press Release – New Zealand Taxpayers' Union Nicola Willis and Christopher Luxon want a growth budget. Full capital expensing is how they make that happen. Following growing public discussion over the weekend and the Prime Minister's remarks on Newstalk ZB this morning, the Taxpayers' Union is once again calling on the Government to adopt full capital expensing as a centrepiece of Budget 2025. James Ross, Spokesman for the Taxpayers' Union, says: 'Full capital expensing is a proven, pro-growth reform that would immediately boost business investment and productivity. With the economy under strain, this is the kind of smart, targeted tax change New Zealand needs right now.' 'Nicola Willis and Christopher Luxon want a 'growth budget'. Full capital expensing is how they make that happen.' Full capital expensing allows businesses to deduct the full cost of new capital investments from their taxable income in the year of purchase, rather than depreciating it over time. This would unlock much-needed economic growth, improve business cash flow, and ultimately benefit workers through higher wages and more jobs. A Q&A briefing outlining the policy's benefits is included below. The full discussion paper is available at Q&A: FULL CAPITAL EXPENSING: A PRO-GROWTH POLICY FOR NEW ZEALAND The New Zealand Taxpayers' Union has been advocating for the adoption of full capital expensing in Budget 2025 as a targeted measure to boost investment, productivity, and long-term economic growth. This Q&A outlines the key aspects of the policy and its potential benefits for the New Zealand economy. What is full capital expensing? Full capital expensing allows businesses to immediately deduct the full cost of new capital investments (such as machinery, equipment, and technology) from their taxable income in the year the investment is made. This contrasts with traditional depreciation methods, where deductions are spread over several years. How does full expensing benefit the economy? By improving cash flow and reducing the after-tax cost of investment, full expensing incentivises businesses to invest more in productive assets. This leads to higher productivity, increased wages, and stronger economic growth. International evidence suggests that full expensing can generate more investment than an equivalent reduction in corporate tax rates. Why does full capital expensing benefit businesses? Businesses currently face opportunity costs through the impact of tax depreciation schedules returning invested capital slowly over a number of years. This means that they have less capital available to make further productive investments. Inflation also erodes the value of future refunds, so delayed deductions are worth less in real terms. Why is this policy relevant now? New Zealand is experiencing economic challenges, including stagnant incomes, declining GDP per capita, and rising unemployment. The Taxpayers' Union argues that full capital expensing is a timely and effective measure to stimulate investment and drive economic recovery. How does full expensing compare to corporate tax cuts? While both policies aim to stimulate economic activity, full expensing is more targeted toward encouraging investment in productive assets. Research indicates that full expensing delivers more than twice the GDP growth compared to corporate tax cuts of equivalent revenue cost. What are the fiscal implications of full expensing? Full expensing primarily affects the timing of tax deductions, leading to a short-term reduction in tax revenue but not increasing the total deductions over time. As investment and economic activity increase, tax revenues are expected to recover, potentially offsetting the initial fiscal impact. Has full expensing been implemented elsewhere? Yes, countries like the United States and the United Kingdom have adopted full expensing policies, resulting in increased business investment and economic growth. These international examples demonstrate the policy's effectiveness in stimulating economic activity. What is the Taxpayers' Union proposing? The Taxpayers' Union recommends that the New Zealand Government implement full capital expensing in Budget 2025.
Scoop
19-05-2025
- Business
- Scoop
Q&A On Full Capital Expensing: Taxpayers' Union Urges Government To Adopt Policy In Budget 2025
Following growing public discussion over the weekend and the Prime Minister's remarks on Newstalk ZB this morning, the Taxpayers' Union is once again calling on the Government to adopt full capital expensing as a centrepiece of Budget 2025. James Ross, Spokesman for the Taxpayers' Union, says: "Full capital expensing is a proven, pro-growth reform that would immediately boost business investment and productivity. With the economy under strain, this is the kind of smart, targeted tax change New Zealand needs right now." 'Nicola Willis and Christopher Luxon want a 'growth budget'. Full capital expensing is how they make that happen.' Full capital expensing allows businesses to deduct the full cost of new capital investments from their taxable income in the year of purchase, rather than depreciating it over time. This would unlock much-needed economic growth, improve business cash flow, and ultimately benefit workers through higher wages and more jobs. A Q&A briefing outlining the policy's benefits is included below. The full discussion paper is available at Q&A: FULL CAPITAL EXPENSING: A PRO-GROWTH POLICY FOR NEW ZEALAND The New Zealand Taxpayers' Union has been advocating for the adoption of full capital expensing in Budget 2025 as a targeted measure to boost investment, productivity, and long-term economic growth. This Q&A outlines the key aspects of the policy and its potential benefits for the New Zealand economy. What is full capital expensing? Full capital expensing allows businesses to immediately deduct the full cost of new capital investments (such as machinery, equipment, and technology) from their taxable income in the year the investment is made. This contrasts with traditional depreciation methods, where deductions are spread over several years. How does full expensing benefit the economy? By improving cash flow and reducing the after-tax cost of investment, full expensing incentivises businesses to invest more in productive assets. This leads to higher productivity, increased wages, and stronger economic growth. International evidence suggests that full expensing can generate more investment than an equivalent reduction in corporate tax rates. Why does full capital expensing benefit businesses? Businesses currently face opportunity costs through the impact of tax depreciation schedules returning invested capital slowly over a number of years. This means that they have less capital available to make further productive investments. Inflation also erodes the value of future refunds, so delayed deductions are worth less in real terms. Why is this policy relevant now? New Zealand is experiencing economic challenges, including stagnant incomes, declining GDP per capita, and rising unemployment. The Taxpayers' Union argues that full capital expensing is a timely and effective measure to stimulate investment and drive economic recovery. How does full expensing compare to corporate tax cuts? While both policies aim to stimulate economic activity, full expensing is more targeted toward encouraging investment in productive assets. Research indicates that full expensing delivers more than twice the GDP growth compared to corporate tax cuts of equivalent revenue cost. What are the fiscal implications of full expensing? Full expensing primarily affects the timing of tax deductions, leading to a short-term reduction in tax revenue but not increasing the total deductions over time. As investment and economic activity increase, tax revenues are expected to recover, potentially offsetting the initial fiscal impact. Has full expensing been implemented elsewhere? Yes, countries like the United States and the United Kingdom have adopted full expensing policies, resulting in increased business investment and economic growth. These international examples demonstrate the policy's effectiveness in stimulating economic activity. What is the Taxpayers' Union proposing? The Taxpayers' Union recommends that the New Zealand Government implement full capital expensing in Budget 2025.
