surplus income tax cuts if National re
New Zealand's National Party finance spokeswoman Nicola Willis has suggested the party may campaign on income tax cuts if they can maintain fiscal responsibility. The proposal aims to address 'bracket creep,' where inflation pushes taxpayers into higher brackets despite no real income growth.
Why it matters
This policy debate highlights the tension between providing tax relief to citizens and maintaining government debt reduction targets during an election cycle.
National's finance spokeswoman Nicola Willis. Photo / Mark Mitchell
National’s finance spokeswoman Nicola Willis has hinted that the National Party would campaign on another round of income tax cuts – although New Zealanders will have to wait for them.
Speaking on a panel at BusinessNZ’s election conference in Wellington, Willis was asked about bracket creep, the phenomenon by which a person’s income tax burden increases thanks to inflation pushing more of their income into higher tax brackets.
She said National had a “track record” on bracket creep, having been the only party to re-set tax thresholds in 14 years. She said National would try to pull the same trick again.
“If elected again, our position is if we can keep to our Budget Responsibility Rules. [It] is essential that we return the books to balance and get the debt curve ending down.
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