Løkke will raise the top tax limit and remove rich people’s personal deductions

The moderates are going to the polls to raise the top tax limit to boost growth and increase the labor supply. At a press conference on Monday in the Folketing, the party’s political leader, Lars Løkke Rasmussen, presents a major rethinking of the Danish tax system.

“We have a top tax that inhibits growth and activity. The top tax is probably the most growth-inhibiting tax we have in Denmark. Still, no one really dares to look at it”, says Lars Løkke Rasmussen.

The Conservatives have recently presented a plan that proposes to completely abolish the top tax in 2030. The moderates will not go that far. The party will raise the threshold for when you start paying top tax from DKK 544,800 to DKK 670,000. According to Løkke, this will mean, among other things, that some nurses and metal workers will have an incentive to work more.

The proposal must be financed through a payroll tax paid by the employer. This means that the tax – or tax – is transferred to the employers instead of to the employees. This will happen through a transition year.

According to the political leader, the moderates’ economic plan must increase the labor supply by 12,860 people.

“It is quite a significant contribution to increasing the labor supply,” he says.

The party will reduce the share income tax to 30 percent and 10 percent for small investors. The moderates will also introduce what Lars Løkke Rasmussen has called a top-top tax, which is not a traditional tax. It means that the five percent with the highest incomes lose their personal allowance.

“We think it is completely fair that the richest five percent of the population should contribute to this package”, says Lars Løkke Rasmussen.

When the party counts on income in this regard, it is not just salary income. It is also share income and capital income. The party will also remove the sixth SU year. It will provide a financial gain of DKK 3.5 billion and increase the labor supply by 6,500 people, it says.

Source: Politiken.dk – Forsiden by politiken.dk.

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