Tax cuts in first year vows Key
By TRACY WATKINS - The Dominion Post | Monday, 21 May 2007
National is promising to cut taxes in its first year in government, after Finance Minister Michael Cullen axed tax changes pencilled in for 2008.
Dr Cullen said last week any tax cuts next year would fuel an already over-heated economy and put further pressure on mortgage interest rates.
National leader John Key said yesterday that Dr Cullen has broken his promise - and pledged to cut taxes in National's first Budget.
National went into the last election promising tax cuts worth $10 billion over three years, ranging in size from $9.62-a-week, for workers earning $30,000, to $92.30 for workers earning $100,000-plus.
But the size of future tax cuts are being kept under wraps till the election.
However National is under pressure to explain how it would fund them, after it rolled over on income-related rentals, the first wave of Working for Families, and looks likely to bow to interest-free student loans and KiwiSaver, which is estimated to cost $1 billion-a-year.
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