Prime Minister John Key is planning on facilitating “$3 billion, I reckon” in tax cuts as part of the National Party’s next election campaign.
Key added that tax thresholds might increase to accommodate for the rising average income.
The Labour Party are opposing this move, with Wellington Central MP Grant Robertson saying the money would be better spent in areas such as housing, the health system, and education.
According to Robertson, the Treasury reports there will likely be a $1 billion surplus in 2018, not enough for National to afford the kind of cuts they are advertising.
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Andrew Little called the proposed cuts “a reckless approach” and an election bribe.
Despite this, Robertson said Labour also had policy that would see them adjusting tax brackets due to inflation.
ACT Party lone-ranger David Seymour weighed in on the proposed policy, saying that even if National made the cuts, it would barely compensate for the more than $2 billion lost in “bracket creep” in the eight years since tax brackets were adjusted.
The last time NZ saw tax cuts was in 2010 when National increased GST from 12.5% to 15% to compensate.
NZ is currently more than $115 billion in debt.