Will Cullen cancel the tax cuts?

Bill English has raised the issue of whether Michael Cullen will, if re-elected, cancel the 2010 and 2011 tax cuts.

This is far from impossible. Consider the evidence:

1. Michael Cullen promised tax cuts in 2005 and then cancelled them after the election on the basis of economic conditions.
2. He has said that the level of debt has now passed his comfort zone
3. His party is promising extra spending such as a pay jolt in education, a move to universal student allowances and longer period of paid parental leave, at a time when the economy is shrinking.

They probably won’t cancel them, but one could imagine if Dr Cullen delivers the 2009 budget, him announcing the 2010 tax cuts have had to be delayed due to the weak economy – probably until 2012 – after the next election again.