National has walked back on its controversial debt target, promising big tax cuts and a much looser debt target in its alternative budget.
But there are still big cuts to the government's day-to-day spending, with operating allowances – that’s the new money allocated in each budget – slashed to between 60 and 75 per cent of what Labour has promised over the next three years.
Those cuts would save $7.3b over the next four years, but it will mean some tough choices when it comes to maintaining public services, which might not get the money they need to keep running at current levels.
The big sweetener is a temporary tax cut. This is achieved by lifting each of the tax thresholds on December 1. The 10.5 per cent threshold would rise from $14,000 to $20,000, with the 17.5 per cent threshold lifting to income between $20,001 and $64,000.
The 30 per cent threshold would apply to income between $64,001 and $90,000 and the 33 per cent threshold would apply to income above that.
National thinks the changes will cost the Crown $4.7b over the 16 months they’re in effect, before the thresholds snap back to normal on March 31, 2022.
Finance spokesman Paul Goldsmith reckons the average income earner would pay $3000 less in tax over the 16-month period.
......... 作者: anzbank 时间: 2020-9-18 11:13:29