Micheal Cullen

The Government is waging a war of words and figures as it pulls apart National's tax cuts.

"It's all one big money-go-round -- transferring money away from investment and saving for a stronger, shared future into more consumption for some in the present," said Finance Minister Michael Cullen.

His tables of figures, released yesterday, show that a worker with children earning $50,000 would have $14.42 more in their pay packet but if that person was in KiwiSaver they would be worse off overall by $5.57.

National proposes trimming down government and employer contributions to KiwiSaver accounts and ending the tax rebate for companies that are involved in research and development.

With other cost-cutting measures, that will pay for tax cuts that will give workers on the average wage an extra $18 a week from April 1 next year.

By April 1, 2011, an average worker will be $46.50 better off.

National's leader, John Key, says one in five taxpayers are in the KiwiSaver scheme and they can put their tax cut into their savings account if they want to.

Dr Cullen calculates they will still be short changed even if they do that.

National says it also wants to help those who don't have KiwiSaver accounts and who don't get anything from the Working for Families programme.

People who don't qualify for Working for Families will get $10 a week unless they earn more than $50,000.

A spokesman for Mr Key said some of Dr Cullen's figures were wrong.

Mr Key came back with an attack on Prime Minister Helen Clark, saying her answer to international financial chaos and domestic deficits was -- do nothing.

"Labour's lack of concern about the looming decade of deficits is reckless," he said.

"The only way out is to grow. National has presented a clear five-point plan to do that, but Helen Clark has offered no response at all.

"She is behaving like a possum in the headlights."