Double shot interview: Bernard Hickey talks to Mark Weldon about tax reform

Bernard Hickey interviews NZX Chief Executive Mark Weldon about tax reform and the investment climate. Weldon, who is a member of the Tax Working Group, supports the idea of a land tax because it broadens the tax base, is efficient and sends a signal to New Zealanders about where to invest. He also talks about the prospects for introducing a tax on equity invested in rental property on a Risk Free Return Method (RFRM) and removing depreciation as a legitimate expense for property investors. Weldon likes the idea of a 30-30-30 income tax system where the top income tax rate matched the corporate tax rate and the family trust rate (currently at 33%). Weldon also talks about the possibility of a differential corporate tax rate where companies making more than NZ$3 million could pay a lower rate so New Zealand could compete with a potentially lower corporate tax rate in Australia. He is confident the John Key-led government will introduce some pragmatic reforms. "I'd like to see some really big direction of travel commitments, such as a package that moves to tax property and real estate and broadens the base materially in capital markets, and that moves to get rid of the rorts in the unlisted public sector, such as the bizarre situation where Hanover has opted out of regulation and there is no regulator," Weldon said. "I think in taxing capital markets you'll see some pretty meaningful change," Weldon said. Your view? We welcome your comments below