National gives speculation of $50 a week+ tax cuts

STUFF.CO.NZ: National finance spokesman Bill English has reignited speculation the party will offer tax cuts of around $50 a week.

Ahead of the May budget National's leader John Key said in an interview with The Dominion Post that it intended to give "meaningful" cuts "North of $50".

Since those comments National has played down expectations of such big tax cuts, but asked today about the $50 figure Mr English confirmed it.

"It'll be around those expectations," he said on Radio New Zealand.

Under Labour's tax cuts, which kick in on October 1, only those earning over about $80,000 will get over $50, and not until April 2011.

Mr English would not reveal any further details of the package but repeated National would be keeping Labour's October 1 tax cuts and adding to them with its own on April 1.

He would not say how National intended to pay for the supersized tax cuts.

Under Labour's cuts, from October 1, those with a taxable income of $20,000 will be $12 a week better off, those on $50,000 will be $16 better off, while those earning above $80,000 will get an extra $28.

A second round will be delivered in April 2010 and by the time of the third round the figures will rise to $22, $32 and $55 a week, respectively.

Labour campaign strategist Pete Hodgson today said he believed National would come up with a $50 a week tax cut, but questioned how it would pay for it.

"The question is what will that do for the things we think should be funded by the government," he said on Radio New Zealand.

Mr Hodgson said Labour intended to attack National and Mr Key's credibility during the campaign, as it had done to former leader Don Brash, but it would also have positive messages based around its own policies.

Mr English said National's campaign would not be negative.