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Can National afford to cut taxes further?

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National has now unveiled its long awaited tax policy.

Party leader John Key revealed a slightly pared down tax cut package that puts more in people's pocket's next April, but offers less than planned.

The cuts are funded by cutting planned increases to Government subsidies for those in KiwiSaver and axing research and development tax credits for businesses.

There is also a reduction in the amount to be spent on infrastructure in the next three years, so that borrowing is reduced.

Mr Key said a worker on the average wage of about $48,000 would be better off by an additional $18 a week above Labour's tax cuts when National's first tranche of cuts kicked in on April 1 next year, if the party is elected.

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