Key's speech in Parliament next Tuesday is D-Day for tax reform

Prime Minister John Key will unveil his preferred tax reform options in his opening speech to Parliament next Tuesday, the Dominion Post and NZHerald have reported, citing Key and Finance Minister Bill English respectively. Tracy Watkins reported for the Dominion Post the speech would include details of changes to be made in National's second year in office.

Mr Key said yesterday that the traditional opening speech to Parliament on Tuesday, his first major speech of the year, would contain a "reasonably detailed shopping list of the economic agenda for National in 2010" and would address matters such as GST and land taxes.

The NZHerald carried an NZPA report quoting Finance Minister Bill English as saying Key's speech would talk about tax reform, foreshadowing actual changes to be announced in the 2010 budget on May 20.

"There is whole list of propositions there, any one of them can be controversial on their own... (we want) a package that is fair and seen to be fair, that gives people the incentive to get ahead, and to save and invest," Mr English said "The prime minister will give some indications of direction next week... You do not get too many opportunities to reshape the tax system and right now with the economic challenges we face, tax is a potentially important lever to get our economy focused on earning more than we spend."

Your view? What reforms should John Key announce? We welcome your thoughts in the comments below.