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In its next alternative budget for 2021, the Labor Party will release its fiscal promises before next year’s parliamentary elections.
According to the plan, the party will present the fiscal plan on November 9, but TV 2 can already present the main features of the promises that have been agreed by the party leadership and the parliamentary group.
TV 2 sources emphasize that there may be changes in the final phase of the work.
In the 2017 election campaign, taxes became a toothache for the party. In the evaluation of the electoral campaign, in which more than 11,000 people contributed, taxes were the most marked.
Increases by about seven billion
The main feature of Ap’s new fiscal promise is to halve announced tax increases from 15 billion in 2017 to about seven billion ahead of next year’s parliamentary elections, TV 2 sources claim.
Thus, Labor leader Jonas Gahr Støre swallows and continues with 23 billion of Prime Minister Erna Solberg’s (H) 30 billion tax cuts since the bourgeoisie took over the government in 2013.
No other tax will provide greater tax revenue to the state, except the estate tax.
However, the party’s fiscal policy spokesperson, Hadia Tajik, acts aggressively:
- Repeated rate cuts by Prime Minister Erna Solberg are reversed. From the current rate of 0.85 percent, the Labor Party will increase the rate between 1 and 2 percent.
- The Labor Party will introduce a further tightening of the wealth tax for those with assets above NOK 20 million, with a surcharge of 0.1 percentage points above the standard rate.
- The increased lower deduction is retained and increased. During the period, the Labor Party will increase the deduction less than NOK 2 million. Already in the budget for 2021, the party will propose to increase the lower deduction between 200 and 300,000 crowns.
- With the increase in the lower deduction, spouses, who are taxed together, will receive in 2025 a lower deduction of four million crowns.
- The discount for stocks and fixed assets will be reduced from the 45% proposed by the government to 20% by 2025.
Most people should avoid tax increases
Even if the party does not want to increase the total income for the status of other taxes, it will still make adjustments that can have a direct effect on its wallet.
As for the payroll tax, Ap’s promise is that everyone with an income below NOK 750,000 will receive an income tax equal to or less than the current one. For those with income above this amount, the income tax will be increased.
Included in this is a planned doubling of the union deduction, which is currently NOK 3,850, in the period until 2025, as well as an increase in the commuter deduction.
The party is also not in favor of any new inheritance tax or adjusting the corporate tax, which after the tax settlement in which the Labor Party itself participated in 2016 is 22 percent.
Ahead of the 2017 elections, the Labor Party announced an increase in income taxes by two billion and a tax increase as a result of the tax reform, including a financial tax of three billion.
Will not increase the tax level
In the 2017 elections, the Labor Party announced a NOK 5 billion tax increase. But after FRP leader Siv Jensen, in his time as finance minister, raised taxes by 6.3 billion, the Labor Party no longer appears to need an increase in the level of taxation in Norway.
Before next year’s elections, the Labor Party will go to the polls to keep taxes at the same general level as today, according to TV 2 sources.
Instead, the party will conduct a so-called revenue neutral shift in which the tax system will reward climate-friendly decisions and in which taxes on products and services that are climate-hostile will be increased.
The Labor Party leadership does not want to be interviewed about the case, but in a text message to TV 2, Hadia Tajik writes this:
– The tax regime of the Labor Party has not been completed. But the Labor Party’s policy that ordinary families should receive relief and higher deductions, while those with more have to pay more in taxes, will also be reflected this time.
