Inflation threat in National’s tax cut plan

Peter Verschaffelt Inflation threat in National's tax cut plan

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Deputy Prime Minister Carmel Sepuloni says the inflationary impact of National’s tax cuts should be of concern to all New Zealanders.

Investment firm Goldman Sachs has warned the tax plan could increase inflation and cause interest rates to stay higher for longer.

Ms Sepuloni says National already has a credibility problem because it has failed to provide its costings.

“On one hand National is offering tax cuts but actually it is going to drive up prices, drive up mortgages, and on top of that they are going to have to cut public services to be able to pay for them so it really is a loss all round for Aotearoa if they were to be successful so we have to fight against that happening and we’ve got to make sure our people get our and vote,” she says.

The last Talbot Mills poll before the election shows Labour dropping three points over the past month to 27 percent, and National up two to 38 percent.

With ACT also dropping to 9 percent as the public gets a closer look at some of its candidates, New Zealand First’s 6.4 percent support looks likely to put it in the kingmaker position.

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