Money or the bag: Major parties crashing into the centre

National's tax plan is a clever political document but raises questions about "heroic" numbers. We look at how much government spending doesn't change and what's up for grabs in coalition deals. Plus a quick visit to Ilam and Epsom.By Tim WatkinWatch the video version of the episode hereAnalysis - National's tax plan released this week was one of the big set pieces left in the Election 2023 campaign, even though the campaign hasn't officially started yet. In the past tax plans have spurred and stalled political momentum, sparked debates about fiscal holes, lost voters and maybe even elections. So though we still have six weeks to go to the election, there was a lot riding on Christopher Luxon and Nicola Willis when they talked tax this week. It's the focus of this week's Caucus podcast.National produced a clever and careful political document. As Julian Wilcox says, they made sure they didn't know the ball on five metres from the try line. That was their first job and they got it done. The narrative crafted was about support for "the squeezed middle", seeking to underline both the caring face of National and its steady hand at the fiscal tiller.It was a tax plan very much in the modern style of economic managers. This was the National Party of Keith Holyoake and Harry Lake, not the party of Ruth Richardson and Don Brash. National is underlining its softer, centrist credentials, with hardly a hint of reforming zeal. In a week where National leader Christopher Luxon told Morning Report he believes in "better government" rather than smaller government, it was a largely ideological-free document. No trickle-down, no market solutions.Instead, it was a tax plan for swing voters. As Lisa Owen puts it, National and Labour are crashing into the centre. National won't touch Labour's winter energy payments or fees-free tertiary policy, for example. It will boost the Working For Families in-work tax credit by exactly the same amount as Labour. It carefully designed tax relief so that those on $80,000 a year would get the same dollar amount in their "back pocket: as someone earning 10 times that or more". You could see the delight on Luxon's face when he was able to point that out, nixing Prime Minister Chris Hipkins' favourite line of the past few weeks, that National was a party giving tax cuts to millionaires. That attack line has been silenced…Go to this episode on rnz.co.nz for more details