As the Government prepares to set out its Budget today, Prime Minister John Key is being accused of dog-whistle politics by hinting tax cuts might be on the agenda for this year's election campaign, Radio New Zealand reports.
The ink is hardly dry on the surplus figures in Thursday's yet-to-be released Budget and already the money is being ear-marked for possible tax cuts.
Finance Minister Bill English's sixth Budget will show a wafer-thin surplus in the next financial year and bigger surpluses in the years after.
Key said there were options for that additional expenditure, which would be spending by the Government or, alternatively, returning that through some sort of tax programme.
Asked whether that meant going into the campaign with tax cuts was a possibility, Key replied that it was.
Labour Party leader David Cunliffe was also not ruling tax cuts in or out.
He said if National made moves in that direction, it would be a case of the big bad Budget secret not being in the Budget but becoming an election year bribe.
Green Party co-leader Russel Norman was not impressed with all the talk of tax cuts.
He said the last time Key handed out tax cuts he gave them to the wealthiest people in New Zealand, and the Government had to borrow $5 billion from off-shore in order to pay for them.
New Zealand First leader Winston Peters said when the country was in serious deficit the Government cut taxes, and doing it again would only widen the gap between rich and poor.
He said Key was making a dog whistle coming up to the election, now that he was scared at how close the election might be.
The Budget will be released at 2pm on Thursday.
