National has scaled back its tax cuts in response to the PREFU. How much is something we'll find out tomorrow, but its at least a small sign that they're not totally insane.
I'm actually wondering whether they'll leapfrog Labour, cancel the existing unaffordable tax cuts legislated for in 2010 and 2011, and replace them with their own smaller package which distributes the gains exclusively to the rich, spun as a "necessary economic stimulus". Fiscal responsability and rampant looting for the benefit of their cronies in one package! OTOH, they've spent the past six years baying for loot and promising "ours will be bigger than theirs"; I'm not so sure they can really back away from it now.
