Only 4 per cent of that amount ($415 million) has been delivered in tax relief. This is from the centre-right party that, according to Mr Key, "philosophically believe[s] in lower taxes and smaller government".
We had our economist model five options for tax relief with fiscal implications of less than John Key's suggested $3b. They form the basis of a report we published earlier in the week.
One option is creating a tax-free threshold of $13,000 - giving every Kiwi worker earning over $13,000 a tax cut of $1295 per year, or $25 in the pocket per week.
Another option targets middle income earners and would reduce taxes for the average worker by more than $35 per week.
Too often the media describes tax cuts as a "bribe", as if they should be treated as an area of public spending.
For the average income earner, a $26 per week tax cut is simply a catch up to what was the status quo in 2010.
Sadly, in the political realm public money is for the elite to bestow magnanimously on the people. In reality, tax cuts are nothing more than a commitment from the school bully to take less lunch money.
While it is moral for the rich to pay more - to cover the social safety net and ensure public services and the good infrastructure which the Government is in the best position to provide - it is morally wrong for the Government to take even a dollar more than is needed. As taxes increase, more and more transactions that would otherwise result in benefits to both parties are foregone.
This shifting of economic activity from higher to lower value uses costs between $13 to $17b.
That equates to roughly the amounts spent by government on education ($13.5 b) and superannuation ($12.9b).
As the Taxpayers' Union demonstrates by shining the light on government waste, there is plenty more to do before anyone would accept that every dollar being collected is well spent.
Treasury's 2016 Half Year Economic and Fiscal Update shows economic growth is expected to average around 3 per cent over the next five years. Surpluses are projected to rise to $8.5b by 2020.
In addition, the financial accounts for the seven months to January show the tax take is tracking even higher than expected. Prior to the 2014 election Bill English committed to reduce taxes "when conditions allow it". If the current conditions aren't that, what are?
May's budget is a chance for a major tax reset to set a course for economic prosperity.
Tax cuts incentivise wealth creation and hard work. They fuel economic aspiration and growth. Bill English should grab the opportunity.
Jordan Williams is the executive director of the New Zealand Taxpayers' Union.
