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Reading Cullen's Budget Smoke Signals Well Underway

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, April 2 NZPA - The annual political ritual of trying
to interpret the smoke signals ahead of next month's budget has
begun in earnest.
The Dominion Post and The New Zealand Herald today both
highlighted Dr Cullen's use of the word "significant" when
questioned about his tax cut package in Parliament yesterday.

Both papers also contrasted this with Dr Cullen saying last week
that he would not be able to match National's tax cut promises, even
though National has yet to reveal its election policy.

His comments yesterday coincided with what was supposed to be the
April 1 start date for his plans to introduce inflation indexing for
tax rates.

The plans were derided as the "chewing gum" tax cuts of between
67c and $10 a week and were abandoned last year in favour of beefing
up the KiwiSaver scheme.

The Herald also noted that while baiting National MPs over tax
policy, Dr Cullen suggested there could be urgent legislation on tax
cuts.

"I confidently predict that on budget night, if and when there
is -- and there will be -- legislation to implement tax cuts,
National will vote against it, thereby completing its long record
on that," Dr Cullen said.

Many believe that Labour will bring in tax cuts ahead of the
election, most likely half way through the tax year on October 1.

Fast-track legislation will be necessary for this.

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