National denies Labour's claim of tax cut policy error

It was the political clash of Omicron times in the House on Tuesday, complete with Zoom fails from self-isolating MPs.

That included National leader Christopher Luxon who is COVID-positive but still calling on the Government to admit there's a cost of living crisis.

Sunday was all hugs, kisses and tax cuts from Luxon. On Monday came the COVID, banishing him to beam into the House from his house on Tuesday. 

With the exception of a few of the Zoom troubles (which plague us all during these times of plague), Luxon did not let his COVID get in the way of getting stuck in. 

"Why won't she admit there is a cost of living crisis?" Luxon asked in Parliament, referring to Prime Minister Jacinda Ardern's AM interview on Monday, when she said: "I wouldn't describe it that way."

Ardern responded in Parliament: "I stand by the entirety of the interview in which I stated 'there is an impact that people are feeling, undeniably'."

The Prime Minister twisted Question Time back on Luxon's $1.7 billion promise to tax Kiwis less 

"There are two options - he's cutting health, he's cutting education or he's increasing debt."

Luxon wants to lift income tax thresholds so Kiwis keep more of their pay.

"Someone on the minimum wage is now in the 33 percent tax bracket," Luxon said. 

Of course, that's not actually how it works because New Zealand has a progressive tax system. If you earn $70,001, your entire salary isn't taxed at 33 percent - only the $1 is. 

But the policy prompted the Government's numbers guy, Finance Minister Grant Robertson, to wade in with a Labour Party press release, questioning whether National has run the numbers beyond this year.

"Front up and tell us exactly how these costs have been put together," Robertson said on Tuesday. 

National Party deputy leader Nicola Willis disputed Robertson's claims. 

"We released on Sunday a fully-costed plan to adjust tax thresholds," she said. 

Willis is adamant it's not a repeat of the fiscal holes of the shadow Budget's past.

"I think he's jumped the shark a bit here. Fiscal hole is something that gets bandied about a bit. There is no hole here."