June 30, 2014 1:00pm by David Farrar

Small tax cuts are better than no tax cuts

National is downplaying the promise of tax cuts, signalling that other policy pledges will take priority.

Prime Minister John Key yesterday said no decision has been made on whether the party would campaign on income tax cuts.

The Government returned the books to black in last month’s Budget, leading Key to dangle the prospect of some relief for middle New Zealand.

But as National wrapped up its annual conference in Wellington, he softened his stance.

“In reality we don’t have a lot of money to move on tax,” he said.

“I’m not saying we couldn’t put together a tax package but everyone needs to be realistic about how small that is.

I think it would be very regrettable if National does not offer some tax cuts. They should be the party of low tax.

Of course they would be modest, and not able to occur until 2015/16 at the earliest. But small tax cuts are better than no tax cuts.

Tax cuts are the only guaranteed way to boost the after tax income of every working New Zealander.