Opinion: OCR spike triggers National to pull planned top tax cut

The Official Cash Rate has been the trigger for National to pull back on it’s planned tax cuts. It’s been softening it’s language recently but for the first time Christopher Luxon says it’s tax policy is up for review.

Christopher Luxon.

In March, National promised to repeal the top tax rate of 39% in the first term.

1News understands National went into the media conference intending to make this announcement today.

This political move takes away Labour’s fall-back line in the house of “tax cuts for the wealthy” but it also opens the door for ACT and it didn’t take David Seymour long to walk through it.

“You can’t beat Labour by becoming Labour. We don’t need Labour with blue paint, we need real change,” he says.

National will be hoping this makes the party look pragmatic, prudent and responsible. But it was one of the big differentials between the parties that’s now evaporated.