The inheritance tax (death tax) was abolished in New Zealand. The Honorable Maurice McTigue, reformer and former cabinet minister in New Zealand provides a principled approach to the tax system as an efficient and effective government revenue making mechanism with minimal distortion to decision making. Mr. McTigue states that at the same time competitiveness of the economy needs to be improved. He also discusses the need for fairness of the tax system, the experiences of the countries that introduced simple flat tax and improved investment climate.