tax cuts

Last week National made some promises about water, and copped plenty of flak on the way. That move signalled the soft launch of National's election campaign, as it starts to tidy up the policies that put victory in September at risk

Old mates Bill English and Nick Smith dragged media to a muddy – but "good enough" – stream in west Auckland last week to announce plans to clean up rivers by 2040. But what the event really signified was National starting to clean up its political house before this September's election.

A major preoccupation of the budget was preparing for the next major financial crisis. To do so it is reducing government spending relative to GDP. Where do tax cuts fit in? 

Our politics reminds me those weekly serial movies where each week the heroine ends in an impossible situation but next week she miraculously escapes and the action moves on to the next impossible situation.

Do the sums and read between the lines, and it looks like something has to give in this year's budget. And I think I know what it may be...

So Bill English hasn't dropped enough pounds... or, at least, dollars. Weight loss is the metaphor Bill English has chosen to excuse his failure to meet the government oft-repeated and top priority of reaching surplus by 2015-16. That's right, it's sayonara surplus.

English's explanation run along these lines:

Tax has caused problems for both major parties at the sharp end of the election campaign, but the difference is that one party is using it to dominate the conversation with less than two weeks to go

Talking about tax has taken on a perculiarly risky air about it this past week or so. Tax is meant to be boring, the stuff of grey-suited accountants. But suddenly it's more like a political Red Arrow – something you only get into if you want to take your life in your own hands.

The latest polls show that Colin Craig, Winston Peters and perhaps even the Maori Party have something in common... the need for Labour to do better

To rip off Jono and Ben, it sux to be David Cunliffe right now. He's got everything he fought so hard for in the leadership of the Labour Party, but has wasted the first phase of his time in charge. Still, he's not the only party leader on the 'sux to be' list right now. As we get closer to election day a whole lot of electoral ironies are appearing.