The National-Labour policy convergence continues, with Bill English repositioning National’s stance on tax cuts, saying that a National Government would only cut taxes ‘as and when’ it became affordable and responsible and stating that the next election would not be fought around tax cuts. The Press notes that ‘National’s realignment puts English and Cullen in virtual agreement over tax cuts’. Even Michael Cullen recognises and welcomes their policy agreement:
Bill's position now on tax cuts is extraordinarily similar to the Government's – they won't be large, they'll be incremental and they will be as they can be afforded and fiscally responsible. I welcome him aboard the bridge – Horatio has a friend
But more than that, it is actually the Government that is making the most noise about tax cuts. Revenue Minister, Peter Dunne, recently hinted that tax cuts were coming. According to the Dominion Post [url], Dunne and Michael Cullen are considering lowering the corporate tax rate to 30 cents, a move that Dunne says would cost ‘just under $2 billion a year’ and if they adjust personal rates as well, ‘the total cost of the package could climb towards $3 billion.’