The Danish government presented tax reform proposals yesterday Tuesday that, according to Prime Minister Helle Thorning Schmidt, will have a significant effect on all taxpayers\u2019 finances, but benefit wage-earners the most, writes Seven59.dk.<\/p>\n
At a press conference, the PM repeated the government\u2019s new mantra that it should always pay to work instead of claiming benefits. Tax reform would solve many major challenges in one go by significantly reducing income tax, stimulating investment and encouraging people to make an effort.<\/p>\n
Minister for the Economy Margrethe Vestager claimed that reform would create 14,600 jobs before 2020 as income tax is gradually reduced by a collective DKK 14bn. All three leaders expressed hope for a broad, cross-party agreement on the proposals when negotiations get underway.<\/p>\n
The far left Red\/Green Alliance, the government\u2019s guarantor of a parliamentary majority, has threatened to torpedo next year\u2019s budget, if the governing coalition passes its tax reform bill with the help of the right-of-centre opposition. <\/p>\n
Johanne Schmidt-Nielsen, titular head of the party, said after initial negotiations with Finance Minister Bjarne Corydon yesterday Tuesday that there\u2019s still major disagreement about the government\u2019s intention to \u00bbsteal DKK 3bn from the unemployed and disability pensioners\u00ab.<\/p>\n
But talks would continue \u00bbbecause somebody needs to remind the government what it fought for, and promised, during the election campaign\u00ab.<\/p>\n
universitypost@adm.ku.dk<\/p>\n