NZ Centre for Political Research

*It just makes sense !!! I can't believe that people think that labour is helping the country. It may have done when it was first elected, but it is killing New Zealand now so it is time for a change if Labour can't change. June

*The need to streamline our countries efficiences as AUS has done is critical to NZ`s future prosperity so it is no single change that will occur with a flat tax rate, it will be in effect, a catalyst for much broader changes - if National adopt this policy they will win the next election by a record breaking margin. Glen

*If we have any chance of keeping talent in NZ we need to be TAX competitive. Marnie

*Some of us only pay 20 cents by legally arranging our position to do so. Alas not every one is able to do so and therefore is disadvantaged. Grant

*I would support any Flat Tax even if its higher than what you put forward at the start providing it was reduced each year like in Australia to a sustainable level. Keith

*Yes, the Labour government who commissioned the McLeod report should know this! Jan

*Your statement: "a taxpayer is regarded as rich if they earn over $60,000. That means they must be punished through the confiscation of 39 percent of their earnings. In fact, the more successful a taxpayer is, the more punitive the tax system becomes" hits the nail right on the head!! Janie

*It might encourage people to up-skill. Alan

*Hard to believe Cullen and Clark would agree Jim

*Over 1/5th is too much, better if well under 20%, around 16%. We have far too many bureaucrats and too much garbage and unnecessary regulations that the overhead of bureaucrats are required to administer. Need to sack them all, including the politicians, and start again. Bryan

*Yeah!! Bring it on. Sally

*With the "terrible twins" in Poland either gone or immobilised, the new government intends introducing a flat tax. Why won't NZ when the advantages are obvious? Jasmine

*I have some reservations about increasing GST! David

*Lowering the tax rate and abolishing the Work for Family will be a great incentive and FAIR for everyone to work !!!!!!!! Allan

*It would give back the incentive to work and produce-must be good for the country. graeme

*It has long been over due. The ACT party had been supporting flat tax for years. The only loosers will be the accountants. I would go one step further and not tax the first 15000 of income. Australia is doing it and that works as well. Jack

*We need to invest in rail to save oil and decongest main roads. Congestion is hurting tourism. A rail link from Northland to Whangarei port and East Coast forests to the Port of Taurangd are essential as is electricfication of the main trunk line. Arthur

*Just look at what has happened to Northern Ireland!!!! WE COULD BE THE SAME!!!" Alexander

*The sooner the better. Dallas

*Price suppresion only forces up the level of increase which takes effect when the controls come off. For examples the price of gold in the late 60's was US$37/ounce and oil was US$6.50/barrel until the oil shocks in the early 70's. Cullen is doing the same with inflation: by refudsing to cut taxes he is increasing the pressure on inflation. If there are big tax cuts this coming year the new Government will be faced high inflation. Peter

*Why not 19%? Bruce

*The sooner the better. Stuart

*a no brainer murray

*Introduction of a flat tax rate may initially benefit existing higher income earners, it would act as incentive to others to join their ranks - one less reason not to progress upwards. Brian

*Les taxation will give more incentives Carl

*much easier to Police and it doesnt penalise overtime. peter

*Not just good, I think it is absolutely necessary. Even a bit higher would be OK, with a higher threshold. It certainly won't happen with Labour though - they like to punish those prepared to work hard to earn a decent income. Gary

*Now if you could take Michael Cullen aside and explain it to him in the same way, maybe he would stop long enough to remove that dirty arrogant smirk off his face and take in the merits of what you are advocating for the benefit of the whole country----but dont hold your breath. Ralph

*There are many ideas whose time has come; the first would be to elect this govt. out of office. Muriel you stole my line from Victor Hugo: an invasion of armies can be resisted but not an idea whose time. Monica

*Under queen helns dictatorship it would mean that the elite will get more whilst the lower deprived sector will be further ridiculed by mr fatso going again to australia to bribe his people to come home. who would want to when queen heln manipulate the sis into keeping imported terrorist and harrass our own people through the use of the police force. Rawiri

*It will never happen because Helen has to be in control. She needs votes and if the higher income earners are seen to be earning more, the media will immediately put spin on it. I wonder whether Helen islooking for a UN job - with all her climate change frenzy. Leigh

*However a far better system would be a zero tax rate and instead run the country on a GST or consumption tax system instead. That way only those purchasing anything would pay tax. I.e. the so-called rich automatically pay more than the so-called poor. Geoff

*And continue to lower over a period of time. Less Govt. & Tax, more personal responsibility/accountability Chris

*Too easy, would never find favour! Karen

*This would be a fairer less complicated system Peter

*Flat tax rates are the fairest system of all. Dave

*The country can afford to have a flat tax of 15% up to $38k of income and 20% there after. If the Labour Govt had held spending to 1999 levels (adjusted for inflation etc) then for $20 billion we would literally pay no income tax at all!!! Dave

*It is about New Zealanders had relief from the thieving Labour government. I have been self employed for 14 years. I haven't been able to give myself an increase in salary for about 8 years. It's about time to bring equity into the tax system and introduce a flat tax system. Walter

*I worked in Hong Kong and experienced the benefits of a low flat tax first hand. Johan

*The tax we pay is the price we pay for working. The tax we pay on profit is the price we pay for taking risks and being both profitable and productive. If we lower the price on profitable and productive work we will get more of it. The higher the price of prfitable and productive work the less you get. Reading statistics such as those in your latest column make me very despondent. How we have reached this stage is beyond me. How we let such short sighted people run our country tells us a lot about ourselves. There must be a widely held perception that we are hopeless at handling our own affairs which means that all things which teach us what should be basic survival instincts have failed and we now need to be nurtured by the government. The flat tax is the only way to go and the rates you suggest make sense. The black tax market is huge and you can get almost anything from anyone more cheaply if you pay cash. Dobbing them in doesn't seem to work either. I was offered a painting and decorating price which had one for cash and a much higher one if it was invoiced. I told the IRD and watched for action but the man and wife business are still at it. If it's not worth taking the risk and make cash jobs less attractive due to less competion with those who operate within the law they will stop. A 21 % tax rate will do that " Mike

*A proviso: That the family benefit for families is removed. A far better idea would be tax relief for families where the mother chooses to stay home and extra tax relief for each child in all families. This would cut down on the number of civil servants at present doing all the paper work.
Naomi

*I think that the $9000 cut off is too low. As A Superanuitant it is extremely hard to live on gross $16000 and if you increase GST to 15c and the cost of everything going up it would be disaterous. I feel that a lot of depression in the Elderly is due to the facy that you have to budget very hard to stay out of debt and it doesn't give you enough income to have a few pleasures like going to the cinema now and again or having a cheap holiday some where. I would like to see some of the politicians live on the Super alone and maintain a home and run a small car which is necessary for ahopping alone. We don't like being reliant on Government handouts. It is not what we worked for and contributed to the economy for. Judith

*Any sysetm that rewards time and efort has to be good for the country. murray

*Its farier, less costly to administer, adn would significantly rerduce tax dodging which is once again a mjor industry in NZ. A tax regime of 10% income tax (first $30k tax free) and 20% GST would dramtically change the whole dynamics of public spending and saving. Inflation pressures would be gretaly reduced, the economy would boom and everyone, especially those in lower incomes would be better off. VInce

*Lower would be even better. Romeo

*Joseph, as Prime Minister of Egypt, under the Pharohs approval charged the people a 20% tax ...As a result Egypt became the granary that fed the known world at that time... What progress have we madein 5000 years? Max

*Very Sensible Wallace

*Yes, but it could not possibly be delivered until there is a massive shift away from the present mindset of big government, no blame welfare, public health system, politics of envy and any other government policy that effectively insulates us from the consequences of our own actions. mike

*I am divided on this as we are charged taxes on taxe e.g.GST (should have stayed at 10%) if we had to have it at all it was the worst tax to bring into this Country especially being on necessary items such as food and clothing fuel, rates, insurances, telephone, all necessary items and so the amount of tax we pay is far in excess of what we should be paying there is NO incentive to increase one's earnings. Once one reaches 65 try living on the pittance a single person gets and one is sent a letter from the P.M when an increase is given each year, as if one should be grateful even though most of those in this age bracket have worked and paid taxes over the years many on welfare have not worked for years in fact I understand that there are 4th generation now on welfare never done a tap of work in their lives and won't either. Marilyn

*Incentive to stay & get ahead in NZ! Graham

*It's high time the government of the day got on with the business of making this wonderful country much more successful rather than making inane rules on how we should live and beating people up to the point where thay just don't want to live at home anylonger. Pete

*We all desperately need a tax cut!! Katrina

*I'm 70 working 45 hrs a week taxed at 21% on my job, and getting into trouble with IRD because they want tax my super at 33%. I cannot afford to stop work. A flat tax wouldhelp and save me giving another $50 - $60 to govt. I've asked them to consider flat tax up to say $60,000. Over 65's could then live in dignity. Cecelia

*Definitely. Christine

*Yes and how about taking a kick at tax on tax: gst renewing my lifetime firearms licence, gst on renewing my life time drivers licence, gst on re registering my car, gst on road user charges, gst on diesel - all tax on tax. Norman

*If a change to a flat tax system is to cost 4b? Why not cut govt spending by that amount? Hugh

*Yes, but 21 percent is still too much. Brennan

*should have happened years ago do away with secondary tax in any case Tracy

There are many ideas whose time has come, the first one to elect this govt. out of office. Flat tax isn't that a dirty word assoc. with Rogernomics?

Now that coca cola is cheaper than milk, isn't there a case to reduce GST on some basic food items; as we're sitting on a rising milk production.

*This is surely a no brainer - Thats why Labour will not endorse it! roger

*Long overdue Murray

*Unfortunately,the word "Flat tax" in New Zealand is the same as the word "nuclear". For too many New Zealanders it is just not in our psyche. John

*Why not just have GST only for individual taxpayers? Charles

*Just WHO is going to push for these things at the next election? Dorothy

*Of course. It has been sound econimic sense for years, and the proof continues to grow. Cullen is right that some of it will be spent on flat screen tV's etc. But that is what happens as a reaction to suddenly getting some extra cash.But you onlu need so many flat screen tv's, once that immediate need is gratified, then the money will get saved or debt reduced. Hugh

*ABSOLUTELY! THE TIME HAS COME..... OR ELSE???? Colin

*Of course, but iw ill never happen under this labour govt. They prefer to spend our money on the bludgers and malingerers that vote for them. I've had enough, I'm going to Oz. Murray

*I don't understand why "the thief" AKA Cullen can't see we manage our money better than he can. David

*We need it now, while the NZ economy is delivering us a $8billion surplus. Mr. Cullen! get real or your Party is gone at the next election. Edwin

*Absolutely! More so if the corporations (especially Banks, Insurance and airlines) who employ teams of lawyers and accountant to evade their taxation responsibilities are made to contribute their portion of the income tax burden. I, for one, am heartily sick and tired of Mrs Clark and her socio-fascist government kicking the hard-working New Zealander time and time again so as they can simply sit back, enjoy their free meals at Bellamy's and GET FAT on the taxpayer. Time for the bludgers in Parliament to get real and accept a salary that is consuistent with the average wage in New Zealand. If we have to liv ethat way, then let them do so as well. One rule for everyone and the same playing field for all. Mark

*A fair basis for taxation Geoff

*We missed the opportunity to adopt the flat tax system when Lange reined in Douglas Prebble and to a lesser degree Goff. Do not be suprised if the bombshell in Clarkes reshuffle is Goff th Finance minister. It would level the playing field for the next election and would increase the chance of Labour being returned for a fourth term which would satisfy Clarkes inflated ego. Ross

*However i'm not sure if 21 cents would be sufficient, but i'd leave that up to the experts to be set at the appropriate level. One tax rate for all, would save a fortune in processing tax. anony

*Removal of the idiotic tax on interest would also be a good idea. Robert

*would be more effective. Garry

*New Zealands current tax system punishes those who work hard to better themselves while rewarding the lazy. Kerry

*I have believed this to be the only fair tax for many years. However I disagree with the suggestion that this should be a tiered system. How can it be flat tax if it's not the same for everyone???!!! John

*It would be a good start. The current system is unfair as it penalises those who earn more by making them pay tax at a higher percentage than those who earn less. Jacky

*After reading your article this makes a lot of sense to me Kathy

*cannot come quick enough shirley

*We are getting taxed and regulated out of business. Why don't we have a good look at what Ireland has done in regard to taxes. Peter

Grimes floats tax regime rejig
By JAMES WEIR - The Dominion Post | Friday, 2 November 2007

Reserve Bank chairman and economist Arthur Grimes is proposing a $12 billion land tax, higher gst and slashing personal tax rates, but says the idea is "a personal one".

A 1 per cent a year land tax to raise more than $12 billion and raising gst to 15 per cent would allow for a cut in personal income tax to just 20 per cent, with low-income earners paying no tax.

Dr Grimes raised the idea at the Business Budget summit in Wellington yesterday.

Finance Minister Michael Cullen, also at the meeting, questioned how people would pay the land tax if they owned property that was not earning an income, but he would not comment further.

The idea to reduce the top tax rate from 39 per cent to just 20 per cent for people as well as companies comes less than a week after Reserve Bank governor Alan Bollard warned the Government against tax cuts.

Last week, Dr Bollard held official interest rates steady but targeted Dr Cullen for adding to inflation and risking more through tax cuts.

Dr Grimes said his idea would allow for zero tax on incomes up to $9500, 10per cent tax on incomes between $9500 and $38,000 and 20 per cent on all income above $38,000.

"This sort of tax structure would raise enough revenue for the Government to provide funds for existing social services, while encouraging people and firms to add extra value," he said.

A land tax combined with lower income tax and higher gst rates is a very appealing package, says former Reserve Bank governor Don Brash. "If the trade-off were a substantial reduction in income tax rates there would be a lot to commend it," said Dr Brash, the former National Party leader. "It doesn't surprise me, because Arthur Grimes is a very smart economist."

Westpac chief economist Brendan O'Donovan said: "Anything that helps flatten the tax system is going to be good to motivate people."

High tax rates were a disincentive to work and investment, and a drag on productivity. He favoured a flatter personal tax system with a higher gst rate to encourage savings and discourage consumption.

The downside of rates or land taxes was that there could be cases of elderly people being forced out of their homes in wealthy suburbs, he said. It could be a dampener on house prices, depending on how much of the tax could be passed through in higher rents.

A land tax could make life difficult for older people on low fixed incomes or for some farmers and Maori making small returns but sitting on valuable properties.

Dr Brash said if people were "asset-rich and cash-poor" they could sell some of their assets or borrow against them to pay the tax.

Dr Cullen confirmed yesterday that personal tax would be "addressed" in next year's Budget, and stressed he was not "ideologically opposed to tax cuts".

He ruled out borrowing or cuts in government services to pay for tax cuts. Taxes would not be cut in such a way to make inflation worse or lead to greater "inequalities".

Dr Grimes said his idea would encourage investment in human capital, new plant and equipment, and research and development. It would also encourage high-value activities to locate in New Zealand.

Reserve Bank officials had no comment on Dr Grimes' proposal.

The summit was attended by 80 senior executives and observers.

*Common sense, really. Jim

*Definitely worth further research. Makes a great deal of sense Diana

*why not 20% income flat tax and 15% GST. It would make book keeping and understanding very simple ken

*it is long over due. must become a issue in election year. JOHN

*21% Its got to be better Gary

*Whether a flat tax system is the answer and 21c is the right level I am unsure but it seems to make sense and certainly the Country needs to do something about the "brain drain" which the present Government is happy to compensate with so many lesser contributing vote-catchers! Ian

*Better would be to rise the GST to 25%, change corporate tax down to 15% and abolish all personal tax. philip

*I might even return to NZ if this happened. Tony

*absolutly cliff

*I would prefer a lower than 21 cents in the dollar flat tax rate with an
increase in GST. Compulsion, (which we all try to find a way around), to save/invest is replaced by incentive. Norm

*This government is a pain in the proverbial, every time I get a pay rise at work, they strongly cut back any benefits we get, and we see little or no change at all in our income! Roger

*19 cents is a better figure Norm

*Fat chance under Scrooge Cullen! Arthur

*Your proposal has one flaw. With the increase in GST, a person on $38,000 a year Would be worse off. A typical pensioner on this income may have a freehold home, and thus spend all their after tax income on items incurring GST. This person would be over $14.00 a week worse off. Martin

*We need to go there, or all sensible people will be off to Aust doug

*you forgot to add the savings in not having to pay out the working for families subsidy to so many families as their net income rises Ayr

*Its a no brainer...sadly there are no brains to work this out in Wellington howard

*We are overtaxed, end of story. We need incentives to grow.More cash in the pocket will stimulate growth. this is a undeniable fact. Trevor

*Yes, but 15% would be better Kim

*About time the people who spend their money wisely regained control of their assets from the people who keep spending our money very unwisely. I am sick and tired of seeing my hard earned money being used to create social problems that -you've guessed it- i will have to pay still more of my hard-earned money to fix. Goodbye Helen, its not really been a pleasure but its certainly time for you to go- and to take your apology of a finance minister, that historian who clearly has learned nothing from history, with you. Lech

*Lower taxes - fine. Flat tax - no. Progressive taxation is still the fairest way to ensure the rich and poor gap doesn't blow out. Australia's higher rate of annual income before being taxed would be a good model to follow. Marty

*It does stagger the imagination that we are even having to discuss this. I guess it is true that indeed we do live in an "age of deceit", where truth and logic are relegated to the pages of history... Peter

*This is a "no brainer" Tim

*It would be one of the best things that could be done to encourage the 'working' class to stay in NZ. More and more bludgers are being supported by less and less workers. And who blames the workers for going where they are appreciated and paid their worth. We could be next, if things don't change!! Ruth

*the harder I work the more I'm punished is a further example of politicians, particularly left minded ones, dumbing down the population to a level of mind numbing, energy and creativity sapping dependence. darrin

*The only things missing from our current national flag is the hammer & sickle and a red background. Time to get shot of Helen Starlin and her lot. Tony

*NZ's most urgent need is for business investment to lift labour productivity. The introduction of a flat tax proposal would enable SMEs to lift their capital investment without borrowing. Michael

*Flat taxes favour the rich. Debbie

*We missed the bus in 1987 and it is long overdue. John

*It is how the tax we pay is spent that needs to be focused on and analysed by the media. Mike

*Not sure about the 21% rate, however believe that a flat tax in the order of 15-20% would encourage investment and improved productivity. Murray

*A flat tax rate would not only be good for NZ - it's downright ESSENTIAL.
1. To try to stop the brain drain which is going to devastate the country.
2. To give entrepreneurs & businessmen an incentive to create more jobs & wealth.
Economics is not a science - it's all theory and ""pragmatism"" - neither of which seem to work well for very long. But the pollie holding our purse strings firmly tied is Mickey (Mouse) Cullen - who's subject is really history - with a speciality in the politics of envy. In any case, highly paid politicians like him don’t have to worry about taxes – they just appoint sycophants to give them higher salaries - not to mention the host of tax free perks that they enjoy. We really do need to get rid of this lot as soon as possible. Otherwise, don't stray far from the door because the lights will be going out - leaving the sad bunch of Labourites, bureaucrats and other parasites to fend for themselves. Ron

*But It wont happen under a Labour govt. Maybe under National but time will tell. Jansen

*I voted No although I agree with the proposition as put. It would be good for New Zealand but it would be disastrous for superannuitants and others on low incomes. Please calculate how many people would be worse off and tell us why they should not share in the benefits of lower taxation. Clifford

*I am open to correction but seem to recall reading that Singapore exempts the first $18000 of income from any tax ? Ron

*High tax chokes the economy; lower tax = growth. A simple concept missed by those who really ought to know... Brendan

*Of course it would! I might even come home to NZ and create wealth there once again. Paul

*We have to get more funds into the hands of private individuals and companies and out of the hands of the bureaucrats who squander it on all sorts of ill conceived projects. It has long been known that private enterprises does it much more efficiently.As long as the present "circus" remains in power this is not likely to happen. Cullen is on record as saying that the first duty of an MP is to get re-elected. Never mind the needs of the country. With cynical, amoral attitudes like that we are unlikely to see any change. The current surplus will be used as bribes at the next election to try and have Labour re-elected. With the present electoral situation in NZ, National have a real opportunity to show some Leadership in the taxation area by adopting a flat tax rate thus setting the stage for a rapid turn around in NZ future. Have they the guts and the nounce to do this? There is not much sign of it at present. Ron

*I find it insulting and degrading that Mr Cullen thinks that, because I earn (in a good year) more than $60,000, I am therefore "rich". Unfortunately my wife and I have finished bringing up our three children, so we miss out on the Working for Families bribe as well. Why can't Cullen and his mates just give us back some of our own money? Andrew

*100% YES!!! Rev Dick

*I think 21 percent is still outrageously high. Pharoah ended up owning Egypt in Genesis 41 with a 20% tax. 10% maximum is fair. Martin

*The low pay and high tax is one of the main reasons I am moving to Australia on Saturday Gary

*A flat tax rate is a great idea. However, with it you no longer need the IRD. The politicians will never vote their brothers and sisters out of a job!! We will need to change the thinking of our elected officials first to get a flat tax system to even get off the ground. Good luck doing that. Skip

*Yes!!!! It should have happened 20 years ago. We'd all be better off than we are now, even Scrouge Cullen!!!! Dave

*The New Zealand economy is frequently stifled by lack of investment money because the government taxes take money from those most likely to invest in development of business. Therefore people with innovative ideas and enterprise have to take their ideas overseas to develop them, borrow money overseas to develop their business, or not proceed with their company's development at all. Even what development capital is available in New Zealand has intereset rates that are far higher than most other countires. New Zealand as a whole loses from that type of environment. Contrary to Marxist and Keynesian dogma, governments don't grow economies, enterprising individuals do - when they have a free market. "Government management of the economy", as Dr Cullen said recently, is a myth. Government interferes with the economy for political purposes believing they can bring about paradise, if only they can get enough control. Big Brother is not dead by a long way! Duncan

*QUID PRO QUO ... Latin for a two way process ... and something the Government ALWAYS wants when extending a ""concession"" to the public. If income tax rates were to be reduced to 21 cents in the dollar, GST rates would have to go UP. Guess what that means? The poor will subsidise the wealthy because there are no essential commodity exemptions under GST. Quid Pro Quo"" You can guarantee the Government will want somthing in return and it won't all be from those directly benefiting from a tax reduction! David

*NZ needs a simpler tax system that allows households to keep more of what they earn. Roger

*And raise GST to catch all those on benefits doing cash jobs. Bill

*Taxes are most efficent at the point that it dose not pay people to try and avoid them. Grant

*Most Definately. John

*The time has come we need to think outside the square. Matt

*But people on government super only should not pay tax of the first 9 or 10000. That is mostly in the under developed countries they do that but as the time goes with all our export of good people to Australia we shall soon be under developed here also. Jorgen

*Common Sense. Cliff

*How can reducing tax thresholds to previous levels be classed as a Tax CUT? Athol

*It would certainly help However I feel that the approach is half hearted Why not get on and do it the way Roger Douglas envisaged The results in those countries which have grasped the nettle surely show that we should just go do it. Jim

*And replace GST with a Transaction Tax of quarter percent each side and half percent on cash withdrawals. Jonathan

*Being a pensioner I would have to pay slightly more tax but in the long term it would be good for the NZ economy and for my family. Peter

*If economic growth didn't double in 2 to 3years I will happily pay. Michael Cullen 10k for being wrong. Sorry Michael but the tax rate does impact on peoples desire to work. Jonathan

*Common sense. ROYDON

*As a self employed person in a small business the whole emphasis appears to be meeting one tax commitment after another and it is hard enough to make a reasonable living from horrendous hours worked without having anything spare to continually try to upgrade the facilities from which you operate. Craig

*21 cents is still to high but better than it is at present. I would favour around 12 to 15 cents. kate

*But Abolishing MMP & Bradford's Bill/Act are more urgent!! Frank

*The first say $10K should be free. Empirical support for the claim that a lower max rate would increase growth is weeak. Don

*Its worth a try as the present system isnt doing much good. Sheila

*Go for it ! David

*YES, YES, YES+ MAKE PENSIONS TAX FREE TO COMPENSATE FOR THE INCREASE THAT WOULD OTHERWISE OCCUR IN THEIR TAX TAKE. CHRISTINE

*We should move away from income and company tax and have government services paid for by government commercial enterprises. KF

*Common sense. Robbie

*It's time this 'Big Sister' State stopped telling us how to spend our money & started giving it back! Mari

*Overdue - would be a winner. Essential for small NZ to win in a global world. Simon

*With the top rate of 21 percent reduced to 15 percent over a short time frame. Jonathan

*Is it possible for ACT to discuss this issue with John Keys as the election alternative to the socialists? Susan

*Its around 20 years overdue on my reckoning! John

*Yes about time the hard workers were rewarded. Jeremy

*The Labour Government gives no Kiwi any incentive to stay in NZ. I lived Sydney for 27 years and I have gone backwards financially big time after being here for only seven years. Sherry

*You may recognise the idea but why not put GST at 15 percent and drop all personal and company tax. Nigel

*But 16c would be better! Sharen

*Most definitely. Walter

*I believe that no matter what we do or say as citizens and tax payers of New Zealand we will not get a fair and just system under labour because Labours Finance Minister has spoken and that is that. The Finance Minister and Labour as a whole cannot be seen to be changing the tax system now after such an adamant stand on it. Besides it is easier to deal with issues like whom is having sex with whom and is he or is he telling lies or not. The Labour Government needs to wake up and smell the roses - we kiwis need to be listened to and heard by our so called leaders. Hey you politicians you were voted in by us to do a job we thought you could do but it appears you can not do it therefore you need to find a more suitable employment posistion for yourself and allow someone to fill the vacancy you leave who is up to the job. Wendi

*Absolute common sence but I am not a Dr! Brian

*Come on Cullen wake up before there are no skilled workers left in nz -only those on state handouts will remain! MIKE

*If David Lange hadn't stopped for a cup of tea we would have had this years ago and be a far wealthier nation today. Allan

*Bring it on! Maybe I might even consider going back to work instesd of being a working for famlies beneficiary. Grant

*It seems to me that with a lower tax rate there would be more inclination to work. Elsa

*Tax should be lower - more in middle income bracket. Diane

*SHOULD BE 20 PERCENT! Dick

*15 per cent would be even better. Christopher

*Hell Yes! Murray

*Hell yes! Mick

*We are over taxed. Ron

*Absolutely! Stuart

*That would be only fair. Johann

*Bring it on. Mike

*The greed of Labour knows no bounds. They don't seem to care that they are driving productive people overseas with their communist policies. They just fill the gaps with refugees who are all beholden to Labour. Meanwhile the country continues on a slow decline. Andrew

*Bring on a flat tax - it would be absolutley great for the country. Kay

*It's time we hadsome proper tax reform in this country. Progressive taxes are strangling initiative. Almost everyone I talk to is thinking of going to Australia and when you look at the wages over there it is no wonder. Sandra

*Taxes in this country are ridiculously high. And Cullen trying to claim he can't afford to give a tax cut just exposes the lies. Tony

*Flat taxes are a great way to go. The country would boom and we would become a genuine world leader. I don't know why National isn't promoting it for all they are worth. Ken

This week's poll asks:

Do you believe that a maximum flat rate of tax of 21 cents in the dollar would be good for New Zealand?