National is launching a major offensive against the government, promising to reverse every tax increase imposed by this Labour government.
Chris Luxon gave a State of the Nation speech in Auckland this morning
Watch it here:
Luxon's address was delayed earlier this year because of the Omicron outbreak.
He said if elected in 2023, National will repeal the Regional Fuel Tax, the extension to the Bright Line Test, and the removal of interest deductibility for landlords.
A National-led government would also adjust all tax bracket thresholds, so people would pay less tax.
He said now was not the time to be adding cost to individuals and businesses.
"We should be letting people keep their hard earned money, not forcing them to hand more of it over to Grant Robertson to spend. So here's my commitment to you. When I become Prime Minister, I'll reverse Labour's tax grab, National will repeal each of these tax increases implemented by Labour."
Luxon said New Zealand has a cost of living "crisis" and the government needs to stop its "tax grab".
He said people were struggling with inflation at a three decade high.
"We've got prices rising twice as fast as wages and we've got Kiwi families being worse off than they were 12 months ago. Food price rises are the highest in a decade, petrol has hit more than $3 a litre and rents are right through the roof. And if you want to buy your first home, forget about it, because the average house price is up almost $400,000 under Labour."
Labour, unions take issue with National cut proposal
The government has dismissed National's tax cut plan, saying their numbers just do not add up.
Minister of Finance Grant Robertson says this is the "fiscal Bermuda triangle," claiming to be able to cut tax and keep spending the same, while not taking on any more debt.
Robertson said the maths just do not add up, and will result in cuts to health and education.
The Council of Trade Unions also said Luxon's proposed economic agenda is out of touch.
Its Chief Economist Craig Renney said it would boost debt, pump up inflation and make it harder for middle income and working New Zealanders to get ahead.
He said the tax cuts would put money in the pockets of the top three percent of income earners, while making the housing crisis worse.
