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Taxation and Economic Growth in New Zealand

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Abstract

The widely heralded liberalization of New Zealand’s economy began in the early 1980s. The reforms were both macroeconomic and microeconomic in scope. The former included changes in the conduct of fiscal and monetary policy. Among the latter were liberalization of international trade, deregulation of domestic industrial, agricultural, finance and labor markets, widespread corporatization and privatization, social welfare reform, and reform of the tax system. Reform of the tax system included a reduction in the progressivity of personal income taxes and a reduction in corporate tax rates, an overall broadening of the income tax base, and the introduction of a comprehensive goods and services tax (GST). The reforms have transformed New Zealand from one of the most regulated economies in the OECD to one of the least regulated. 1

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© 2000 Springer Science+Business Media New York

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Branson, J., Lovell, C.A.K. (2000). Taxation and Economic Growth in New Zealand. In: Scully, G.W., Caragata, P.J. (eds) Taxation and the Limits of Government. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-4433-3_3

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  • DOI: https://doi.org/10.1007/978-1-4615-4433-3_3

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4613-6996-7

  • Online ISBN: 978-1-4615-4433-3

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