A new calculation from Statistics Norway (SSB), which is paid by AP, shows that tax cuts are a swine expensive and extremely ineffective to reduce unemployment quickly .
– If the aim is to create jobs, as is public investment 15 times more effective than sharing money into tax cuts. If money is spent on government purchases of goods and services, so it is 70 times more effective than tax cuts, saying the Labor leader Jonas Gahr Støre and shows to Statistics Norway’s so-called “QUartz calculations of short-term effects of three different countermeasures in.”
Støre is on fire over the findings to the SSB, while Finance Minister and leader of the Progress Party, Siv Jensen, says Labor candidate for prime minister misses completely.
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64,700,000 per job
These are the main points of the report:
• the cost per additional employee in the first year (2016) is by far the lowest at the increase in public consumption by 925,000 per job.
• By increasing public investment is the equivalent cost in the first year 4.3 million per job.
• With a broad-based tax relief is the cost considerably higher: cost per job is 64.7 million kroner in the first year.
– If the aim is to create jobs, as is public investment 15 times more effective than sharing money into tax cuts. And then I want to emphasize: Not necessarily government employees, but public investment in activities such as private companies deliver on, such as roads, buildings, railways, infrastructure, said Mr Støre.
State Budget 2016: Suggested billion tax cuts to the wealthiest third time
– Not responded
– The government has cut 21.3 billion in taxes. They call it “growth-enhancing tax cuts.” But what is the reality is that growth is weaker, unemployment goes up and the differences increase. SSB’s figures show that the Conservatives and the Progress Party’s commitment, cuts in taxes to those with the most are ineffective and little accurately to find new jobs and growth. Last year half of the tax cuts the government proposed to the five percent richest. It is not possible to say that it does not affect differences in Norway, thunders Minister.
Labor leader has long irritated the government in his opinion does not answer detailed questions about the effect that tax cuts have on the Norwegian economy.
– I have asked Erna Solberg in Parliament on this issue, but received no reply. We have asked the Ministry of Finance, but get no favorable reply from there either. So we went to the Central Bureau of Statistics, to assess the impact of tax cuts, says Støre.
The Minister of Labour : There are no national unemployment crisis in Norway
Aps parliamentary paid SSB 50 000 million for the calculation.
– the idea of the Conservative Party and the Progress Party is that these tax cuts over time will lead to increased revenue to the community, because there will be more activity. This is a claim that has been repeated from the right side many times, but it is poorly documented. This has not worked in other countries and is not to be working here. But the Conservatives’ tax cuts however, is a accurate way when it comes to increasing economic disparity, says Støre.
He is also a strong opponent of the government’s cuts in capital tax to the richest.
– some tax cuts can have a positive effect in the long term. But then comes the wealth tax far down the list. What we have agreed in Parliament, lowering taxes for companies, are however high on the list of OECD. In 2018 the corporate tax down to 23 percent, it is a long-term contribution to increased investment and activity in Norway. There are fewer than 15 per cent in Norway who pay wealth tax. Research shows that a large portion of the cuts in the tax only lead to increased savings. 60 percent of those who pay property tax are pensioners, says Støre.
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dismiss Minister
Finance Siv Jensen dismisses Minister.
– This is no novelty. I assume that the Minister has notified that 86 percent of the financial resources of the state budget has gone to anything but tax cuts. We have increased our communications budget as much as we have reduced taxes. We have not reduced the taxes that a short-term employment measures, but because we need a competitive business in the future, says Jensen told VG.
– Of the 14 percent of financial resources, constitute cuts in capital tax four percent. I find it odd that Labor would not help to lend a helping hand to the family-owned businesses around Norway. It is these companies that are affected by that Minister will increase the wealth tax. The government’s action plan to increase employment increases we just their public activity in the economy, by betting extra on construction, vedklikeholde hospital buildings and build railways, says Jensen.
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