Prime Minister John Key has defended an expected cut in the top income tax rate, saying it is a way of trying to keep skilled people in New Zealand.
Mr Key says a quarter of tertiary educated New Zealanders live overseas, a higher proportion than any other developed country.
Mr Key says people who pay the top rate of tax are important to the economy and include doctors, nurses, school principals and entrepreneurs and the Budget will include a deliberate attempt to get those people to say in New Zealand.
However, he says when the Budget is delivered on Thursday, people will see the tax package is fair and includes tax cuts across the board.
