I always wonder why the incidence of GST is so well understood but the incidence of company taxes so poorly understood.
Everyone understands that exports should be GST free because we cannot pass on the tax to foreigners – we simply have to accept the world price.
The international market for capital is just as unforgiving in expecting the same after-tax return wherever it goes.
So if a country has an above average company tax, before tax rates of return must go up to equalise after-tax rates of return around the world.
This means wages must be lower in New Zealand both to ensure equalisation of after-tax rates of return and because there is less investment here if rates are return are lower after-tax.
Utopia, you are standing in it! 
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