Don Brash wants to see New Zealand close the pay gap with Australia by 2025 with measures including big cuts in top tax rates, cashing up the superannuation "Cullen Fund" to reduce government debt and a traffic congestion tax in Auckland.
The 2025 Taskforce, chaired by Mr Brash, will announce today its report into ways to increase New Zealand's productivity, according to the New Zealand Herald
The main recommendation is to reduce Government operating spending from 37.3 percent of gross domestic product to 29 percent within four year.
Steps to reduce Government spending
could include congestions charges being introduced into central business districts, with the roll-out starting in Auckland for drivers.
Interest-free student loans could be scrapped and the current 20 hours free childcare allowance could be made subject to means testing.
The age of eligibility for the pension could be raised in line with increasing life expectancies and the NZ Superannuation Fund or Cullen Fund could be liquidated so the Government can get itself into the black sooner.
In the report, a new "flat" tax
of between 20 and 25 per cent rate would be introduced at a reduced rate for workers and businesses.
Now the top personal rate is now 38c in the dollar, or 30c for company tax.
On Friday, finance minister Bill English said baseline budget spending had increased by 45 percent since 2005 and the economy
had grown by 15 percent.
"This kind of rampant spending growth is unsustainable and cannot continue," he said.
What do you think of these proposals? Should the Government adopt the suggestions from the 2025 Taskforce?