New Zealanders promised "modest" tax cuts if gov't re-elected

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ATAHK reads from Xinhua News that New Zealand's ruling National Party on Monday outlined controversial plans for "modest" tax cuts from 2017 -- if conditions allowed. For details, please refer to the following news from Xinhua News on September 8th:

The party, which is campaigning on its fiscal management record and its aim to achieve an operating surplus next year, unveiled the plans just 12 days before a general election on Sept. 20.

Finance spokesman Bill English, who has been finance minister for the last six years, said the party, if re-elected, would continue to restrict average Budget allowances for new spending and revenue measures to 1.5 billion NZ dollars (1.25 billion U.S. dollars) a year over the next three years.

A third of that sum would be reserved for tax reductions and debt repayment, as economic and fiscal conditions permitted, while the bulk of the remainder would go to health and education, English said in a statement.

"Any tax reductions will be modest, given the fiscal headroom available, and they will focus on low and middle income earners," said English.

English said his priorities, if returned as finance minister, would include to return to surplus and maintain a surplus and to reduce net government debt to 20 percent of GDP by or sooner than 2020.

The main opposition Labor Party described the tax cut proposals as vague and "completely irresponsible."

"Promising vague tax cuts that may, or may not, provide Kiwis with a few dollars a week in a few years time provides no information for New Zealand voters," Labor finance spokesperson David Parker said in a statement.

"With exports in decline, growth halving and wages stagnating, New Zealand needs economic policies that will support investment, innovation and industry and create better jobs with higher wages."

The center-right National Party is currently the highest polling party ahead of the election, but the polls are divided as to whether it could govern alone or would need a coalition with minor parties as it has done since 2008.

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