The OECD has some helpful suggestions for how New Zealand might lift its lousy productivity performance - and with it, living standards. But he gave short shrift to the OECD's suggestion to cut the company tax rate in order to lower the cost of capital and boost capital investment per worker. At 28 per cent, the corporate tax rate is higher than the OECD median of 25 per cent. New Zealand is even less competitive in terms of the effective marginal tax rate corporates face. "It is difficult to see how [New Zealand] can resist the global trend to lower corporate tax rates without losing out on foreign investment," it says.

Source: New Zealand Herald June 22, 2017 19:25 UTC