National is promising temporary "massive" tax cuts, which it says will put $3000 in the back pocket of middle New Zealanders.
If elected, the party would lift the bottom, middle and top tax thresholds in a bid to "let Kiwis keep more of what they earn".
The overall size of National's plan is $10 billion over five years and will be paid for by using the unallocated portion of the government's Covid-19 fund and by spending $51 billion less money than a Labour government would over the next 14 years.
But National has walked back its previous promise to get government debt down to 30 per cent of GDP by 2030 – today revealing that target was "not practical or feasible".
"Today, we are facing the biggest economic downturn that world has seen in living memory," National leader Judith Collins said.
"To keep our economy ticking, New Zealanders need money to spend."
That spending, according to the party's policy, will be largely driven by temporary tax cuts.
Under National, the bottom tax threshold would be lifted from $14,000 to $20,000, the middle bracket would rise from $48,000 to $64,000 and the top tax threshold would be lifted from $70,000 to $90,000.
But these tax cuts are only temporary, coming into effect on December 1 this year and expiring on March 31, 2022.
Collins said the policy would put about $3000 a year, some $50 a week, to middle-income earners.
Last week, Labour promised that it would create a new tax bracket – 39 per cent for those earning $180,000 a year.
But, speaking to media after the policy was unveiled, Collins said this morning that no country has ever taxed its way out of a recession – "and this is a big one we're in now".
She said New Zealanders were facing a critical decision this election: "Grow our way out, or tax and spend."
Collins said the policy was not an election bribe - it was a package that brings "faith" back for New Zealanders.
National finance spokesman Paul Goldsmith admitted that the economy will need more stimulus - but he said the way to do it would be to "ignite the economy" with National's tax-cut package.
He categorically ruled out any cuts to health, education and social services but would not be drawn on what National would like Kiwis to spend the money they save from tax cuts on, saying instead that he "trusts New Zealanders".
Under the "current people", New Zealand has gone to "hell in a handbasket".
National estimates the tax-cut policy would cost $4.7b over that 16-month period.
National's plan includes doubling the depreciation rate for businesses which spend money on a new plan, more equipment and any new machinery over the next year.
This brings forward the amount a businesses is able to claim in depreciation for new investments – it is expected to cost $1.7b over five years.
Meanwhile, National has promised it would not cut any government spending on health, education or social development, while keeping a $10.2b spending buffer over the next four years to deal with "any future cost pressures".
The funding of National's tax cut plan also relies heavily on a reduced spending plan.
The party's operating allowance – how much new money the government will spend each year – is $51b lower than Prefu's estimates over the next 14 years.
For example, National's planned operating allowance for the 2021/22 budget is $1.5b.
That compares to $2.4b of new spending the Treasury expects the Government to spend over the same period.
National has been criticised by Labour in the past over its plans for spending.
Finance spokesman Grant Robertson said that National was caught in a "Bermuda Triangle" were it wants to increase spending, reduce revenue and cut debt all at the same time.
"You can't do all of those things at once – I think their plan is lost somewhere in that triangle."
National did concede today that its plan to reduce government debt to 30 per cent of GDP by 2030 was not realistic.
It is now targeting 35 per cent of GDP by 2034 – its billions of dollars more in wiggle room.
But National's debt-payment plan still has the party paying back and extra $74b by 2034 than the current plan.
National has also forecast that, if it's in government, it would have the books back into surplus by 2027.
"Labour can't balance the books in 15 years; we will do it in eight," Collins said.
Under the Pre-Election Economic and Fiscal Update (Prefu) released yesterday, the government would continue to be in deficit until at least 2034.
And although it has promised to spend $4b of the Covid-19 contingency fund on its temporary tax cut plans, it has also promise it would not spend $5b of the so far unallocated $14b.
This, according to Goldsmith, would help the party pay down debt quicker.
Collins had previously said she didn't want to cut taxes – but she said, after the second lockdown, she changed her mind.