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National dangling tax cut 'carrots' that will only benefit high income earners – Bernard Hickey

Simon Bridges announced last week that a National government would cut taxes for average income earners.

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Bernard Hickey weighs in on the National Party’s tax announcement and says Simon Bridges got it wrong. Source: Breakfast

The National Party leader said people on the average wage shouldn't be paying "almost 33 per cent in the dollar."

But Bernard Hickey, managing editor of Newsroom-Pro, told TVNZ1's Breakfast today that National is dangling tax cut "carrots"  that will only benefit high income earners. He disputes the 33 per cent figure Mr Bridges cited too.

"He got it wrong in his speech," said Mr Hickey.

"For the average tax earner, particularly for a family with a couple of kids who might be getting working for families, their tax rate is not 33 per cent. 

Mr Hickey said those who would benefit from such a tax cut will not be the average earner. 

"Those tax cuts, if you cut the 33 per cent tax rate or even raise the threshold, most of that money goes to the people on the highest thresholds so you’ve gotta be careful about tax rate carrots," he said.

"They may look good but when you try and grab them actually someone else is eating the carrots."