Hide Rodney: Income Tax Bill — First Reading 
Hide Rodney: Income Tax Bill — First Reading 
[Volume:606;Page:3545] 
RODNEY HIDE (ACT NZ) 
: 
 I enjoyed Jill Pettis’ contribution. In the time that I have been in the House that is the best contribution I have heard from her in 6 years. It was positive analytical—for Jill Pettis—and insightful which is more than I can say for every other contribution she has made.  
This legislation says it all: it is a simplified version of the income tax legislation. I tell people who are listening on the radio that when I wandered over to pick up the bill I picked up something—I ask Mr McNair how thick this bill would be. 
Craig McNair 
: Pretty thick. 
RODNEY HIDE 
: It is pretty thick like some Government members. It is probably an inch and a half thick in old Christian units. I thought that this bill was enormous but when I carried it back to my desk and started to peruse it I discovered I had only half of it. I had to get the second half which is another inch and a half thick. This is the simplified version of the income tax legislation! I want members of the House to consider that this legislation is what a dairy owner taxi driver or plumber has to comply with. This is the requirement that we put on small and medium business in New Zealand. As we know that is not the half of it. One has to have the Goods and Services Tax Act and all the other tax Acts—and this legislation is what this Government calls the simple version of our income tax legislation. [ 
Interruption 
] It is very interesting to hear from Clayton Cosgrove. I have been down in his electorate and they say he is a very interesting MP. They say that what he lacks in intelligence he makes up for with his own stupidity. That summarises Clayton Cosgrove’s contribution to these debates.  
I have a question for members of the Government: since they have come to office have they made the income tax legislation simpler or more complicated? Chris Carter says that is a hard one. I ask him what the answer on balance is. Mr Carter has a lot to say interjecting away by saying that members think they have been having a glass of wine or whatever. But I ask him this: since this Government came into office in 1999 does he believe that the income tax code has become simpler or more difficult? Chris Carter is sitting there silently. He knows nothing about income tax; he does not speak to business. Trevor Mallard has a lot to say. He is a senior Minister so I ask him whether the income tax code has become more complicated or simpler since this Government came into office. We can assume from their silence that those members do not know the answer to that.  
Every person whom I know in business has told me that it has become more complicated. Every accounting professional and every law professional who has come before the Finance and Expenditure Committee has said that the income tax legislation has become more complicated—and the senior Ministers and senior members in this Government do not even know that. Chris Carter and Trevor Mallard like to pretend that they are in touch with business and yet they cannot figure out whether in the last 4 years the income tax code has become more complicated or simpler.  
Let me remind members of the submissions and reports from professionals and from business people up and down this country when the top rate of tax was increased to 39 cents in the dollar in terms of what that meant to the tax code. I know Dr Lockwood Smith knows exactly what that meant because we sat there in the select committee and heard those submissions. Did Trevor Mallard Helen Clark or Michael Cullen care about what those submissions stated? No Craig McNair is quite right; those members could not care less about business. Business to them as Michael Cullen says is just another interest group with its hand out. That is how Michael Cullen views farmers dairy owners plumbers taxi drivers and the other working people who are saying that they are being killed by that stuff. Michael Cullen says that business is just another interest group like the Post Primary Teachers Association with its hand out.  
Let me come to the United Future party. I thought I had studied its policies but tonight I was very interested to hear a new one from no less than its deputy leader who says the United Future party’s tax policy— 
Paul Adams 
: Who are you looking at? 
RODNEY HIDE 
: What is Mr Copeland? He is the whip. Who is the deputy leader of United Future? [ 
Interruption 
] He is not in Parliament. United Future has a deputy leader who is too shy to be elected and too shy to turn up in this House. But United Future’s whip who is the next in charge says that the party’s policy is to have a 2-year tax holiday for start-up businesses. Mr Craig McNair thought that I was happy and excited at the prospect of that but I was stunned. I was shocked. When did it occur I ask Mr Adams that that became United Future’s policy? 
Paul Adams 
: It’s exciting. 
RODNEY HIDE 
: When did that become a policy of the United Future party? When was it announced and when did the caucus decide on it?  
Mr Adams has said that policy was decided on and announced tonight. We have here the United Future members saying that they would provide a 2-year tax holiday for every start-up business in New Zealand. For 2 years those businesses could just forget about the tax rules and paying tax because there would be no tax for 2 years. Here is my question: what efforts have the United Future members made to present that new exciting and innovative policy to the Government that they so happily support? Have the United Future members discussed that policy with the finance and revenue Minister Dr Michael Cullen? I ask those members whether the answer is yes or no. 
Paul Adams 
: I haven’t. 
RODNEY HIDE 
: They have not spoken to the Government about that yet. Is there a plan to take that new bold and innovative policy that was dreamt up tonight to the Government of the day? Will it be taken to the Government tonight? [ 
Interruption 
] I quite like this United Future party. It is having bold and innovative ideas tonight. We have learnt three things. We have learnt first that United Future’s deputy leader is not a member of Parliament. I had not heard of him before. Second we have learnt that tonight United Future has invented a new and exciting tax policy: a tax holiday for 2 years and third as Mr Adams has just announced we have learnt that I am United Future’s spokesperson on tax matters. I admire his judgment insight and intelligence. After hearing Mr Copeland’s suggestion I think the United Future party does need a new spokesperson on tax matters. I say to that party— 
Judy Turner 
: What’s your policy? 
RODNEY HIDE 
: I am pleased the member asked that. Our tax policy is that there should be a flat tax of 20 cents in the dollar across the board. [ 
Interruption 
] We are being told by the United Future party to talk to the Government. Our party probably has as much success in talking to the Government as the United Future party does but the difference between us is that we do not vote for the Government. That is the difference between United Future and ACT. The United Future party members now consider themselves to be so useless that they can float ideas without any thought that anyone in the Government might listen to them because each and every day in this House their votes are taken for granted. So those members have come down to the House and recommended as supporters of the Government a new policy which is to have an income tax and a GST holiday for 2 years for every new business.