Monday, May 30, 2016

Tax Convention provides juicy cuts for the wealthiest – NRK

It shows fresh calculations by the Ministry of Finance.

The 1,400 richest receives an average of well 360.000 million in new cuts in asset and dividend tax. The amount corresponds largely an ordinary Norwegian salary.

In comparison, get the 1.4 million people who have between 1 and 5 million in assets, an overall tax cut of $ 290 million in property and dividend tax – a 200-patch per person on average.

the tax reform discussed in Parliament on Tuesday.

Introduces distinguish

the Ministry of Finance figures are prepared on the basis of four questions from SV in Parliament. The questions illuminate the distributional effects of cut 1.1 billion in wealth tax imposed by this spring’s tax settlement in Parliament.

509 million goes to the 1,400 richest.

The reason for the cut is that there from 2018 introduced a distinction in wealth tax between so-called working capital – ie investments made in the company – and other assets.

Finance Siv Jensen (FRP) believe wealth tax makes it more difficult to keep employment under Norwegian ownership, since the tax only affects Norwegian owners. She also points out that the tax is unfortunate because it may create tax motivated transfers from Norway.



– The richest winners

The figures show that this is not a tax for ordinary people, and that they richest once again the winners, says SV leader Audun Lysbakken.

– we stood outside the settlement because we refuse to support policies that can contribute to greater inequalities. These figures show that we were right, he said.

– A handful of people get hundreds of thousands of crowns each, almost half of the tax cut.

Lysbakken also goes to the frontal assault on Labor, which was involved in the settlement. With its support for reform does Ap efforts to reduce the differences harder after an election victory in 2017, he fears.



Dress WINNERS: SV leader Audun Lysbakken believes the latest figures from the Ministry of Finance on the distribution effects of this spring’s tax settlement, shows that this is not a tax for ordinary people.

Photo: Ruud, Vidar / NTB scanpix

– Tax settlement was a bad settlement that gave a carte blanche from Labor to an important part of the Conservatives’ tax policy.

When the settlement was presented, said Aps Marianne Marthinsen that the parties continue to disagree about the rate of wealth tax.

– We have been and are fundamentally opposed to it which has been the main priority for tax cuts policy of the government – cuts in capital tax to the wealthiest. But we have to make the wealth tax better.

Hard fronts

The debate about tax cuts as combating unemployment will probably be mainly towards the election next fall.

Labor was on tax settlement, but at the same time showed a Ap-paid report from Statistics Norway (SSB) recently that tax relief is an expensive and inefficient way to bring down the unemployment rate.

SSB report shows that public investment is 15 times more effective than tax cuts if the aim is to create jobs, according to Labor leader Jonas Gahr Støre.

– When jobs disappear in the oil sector, the Ap replacing them with jobs in the public sector. It’s like pee in your pants to keep warm, said the Conservatives Stefan Heggelund.

– We need more profitable private jobs that contribute to the state budget, not more that live off the state budget.

the government has since joined given over 18 billion in tax cuts to boost activity and promote restructuring in business.

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