National to set bidding war alight over taxes

National will set the 2005 election bidding war alight today when it finally reveals how much each New Zealander in work could expect from tax cuts that are budgeted to cost $3.9 billion annually within three years.

It will lay out a timetable of phased-in tax cuts and threshold adjustments over the next three years, with cuts in personal tax rates being first in the queue over cutting company tax from 33c to 30c.

National is also expected to keep some parts of Labour's targeted Working for Families package announced last year, those parts that have already taken effect.

It will not keep the $438 million expansion promised by Labour last Thursday which took the cost of Working for Families to $1.5 billion in three years.

At National's campaign launch in Auckland yesterday, leader Don Brash revealed one aspect of his policy, lowering the rate at which tax is collected on secondary employment. It is aimed at removing disincentives for people to get second jobs and tax refunds on them.

He said lower taxes and better incentives were "the key to igniting the spirit of enterprise required if New Zealand is again to be a land of opportunity".

Today will be a testing day for Dr Brash after National's four-point fall in last night's One News Colmar Brunton poll and his first televised debate with Prime Minister Helen Clark tonight on One at 7pm.

Labour holds an eight-point lead over National and with the Greens would have a majority in Parliament if an election was held now, a poll released tonight shows. The poll had Labour steady on 45 per cent support, with National down four points to 37 per cent.

The Greens picked up three points, moving to 6 per cent, and New Zealand First was down one point, also on 6 per cent. Act was steady on 2 per cent, United Future and the Maori Party were both steady on 1 per cent, and the Destiny Party also had 1 per cent support.

- additional reporting NZPA