Books and reports: 2008 Budget Personal Tax Package 11 February 2008, Business Roundtable report	View PDF
Economic growth is a priority objective of the government. Growth requires improvements in productivity and workforce participation. Both would be assisted by lower taxes. The reduction in the rate of company tax from 1 April 2008 is a welcome move. However, personal tax rates are more important for many small and medium-sized businesses and professional organisations, and for new equity invested in companies by resident taxpayers. A coherent, medium-term strategy for personal taxation is needed which is consistent with the decisions on business taxation in the 2007 Budget. At present New Zealand's tax policy is lacking in strategic direction and vision. The Tax Review 2001 (McLeod Review) remains a sound guide for such a strategy. A key recommendation was the adoption of a lower, flatter income tax structure. This would reduce the deadweight costs, complexities and other inefficiencies of the present system.