Over 12,000 Say NO To Corporate Tax Cuts – Action Station

A petition signed by over 12,000 people calling on the government to scrap plans for corporate tax cuts was delivered at a public online event this Monday morning.

Speakers included economist Ganesh Nana, and ActionStation Director Kassie Hartendorp who spoke of their concerns of the impact on already underfunded public services. Tax Justice Aotearoa Chair Glenn Barclay officially sent the final petition to Prime Minister Christopher Luxon and Minister of Finance Nicola Willis calling on them to abandon the idea of corporate tax cuts.

The petition was launched in the wake of the Prime Minister and Finance Minister recently suggesting that the Budget might contain cuts in the corporate tax rate and has harnessed widespread public opposition to tax policies that disproportionately benefit corporations at the expense of essential public services.

Tax Justice Aotearoa chair Glenn Barclay says the timing of the petition’s delivery is set to coincide with the Government’s investment conference, and reinforces the call for economic policies that prioritise public wellbeing over corporate interests.

“Cutting the amount that corporations contribute will not stimulate economic growth – it will reduce the resources that we need to ensure our public services can provide us with timely and decent care and support. Just reducing the corporate tax rate by 1 percentage point would result in a loss of $650m in revenue and you could do a lot with that money to make New Zealand a better place for all.

ActionStation Director, Kassie Hartendorp says the proposal to cut corporate tax rates is salt in the wound during a cost of living crisis, with no end in sight.

“Families are struggling to buy the basics at the supermarket right now. This government is rewarding those same supermarkets by suggesting they should make even more mega profits, through a cut in corporate tax.

Economist Ganesh Nana highlighted that reducing the corporate tax rate would attract the wrong type of corporate and the urgent need to resource the government more to deliver the services we need for today and into the future, not reduce it.

“Why are we trying to bribe people and companies to come here? If we’re getting people to come here because we’re paying them, they’re probably coming for the wrong reasons. They’re not coming for our reasons. They’re not coming to serve us. They’re not coming to deliver us good jobs and a good future… They are going to extract what they can out of us and then go away and leave us with a bill.”

When asked about the idea of having a reduced tax rate just for companies working on infrastructure development, as recently floated, Economist Ganesh Nana says it’s a race to the bottom that doesn’t benefit New Zealand.