Government wants to cut taxes. They are to apply to all workers
The Labour Party (Ap) announces an income tax cut for all workers. Finance Minister Jens Stoltenberg and Ap deputy leader Tonje Brenna, however, rule out abolishing the wealth tax altogether. Instead, they want to change its structure and begin talks on a broad tax agreement.
The Labour Party announces lower taxes for workers. The wealth tax, however, will remain.
Fot. Adobe Stock, licencja standardowa
On 15 September, Ap's leadership presented its plans ahead of a meeting of the party's governing bodies. Stoltenberg outlined the approach with which the party wants to enter negotiations on taxes paid by residents and businesses. One of the main points is lower taxation of work. However, Ap has not yet specified the scale of the planned cuts, as their level is to be determined during negotiations.
Taxes on work are to fall. The amount remains open
Brenna announces broad income tax cuts for people who earn their living from wages. According to her, the system should make work more profitable, while also encouraging more people to take up employment. Ap has not yet presented the specific amount of the relief. Brenna stresses that it will be subject to negotiations. Cutting tax on income is to be one of the party's three main priorities.
The second is to provide businesses with greater predictability. Stoltenberg points out that this is precisely why a tax agreement involving a larger part of the political spectrum is needed, even if parties do not agree on every issue. Redistribution remains the third priority. Ap wants to maintain the principle that people who own and earn more pay higher taxes. The party also intends to simplify the system and close existing tax loopholes.
The second is to provide businesses with greater predictability. Stoltenberg points out that this is precisely why a tax agreement involving a larger part of the political spectrum is needed, even if parties do not agree on every issue. Redistribution remains the third priority. Ap wants to maintain the principle that people who own and earn more pay higher taxes. The party also intends to simplify the system and close existing tax loopholes.
The governing parties want the tax agreement to be passed by a clear majority of members of parliament.Photo: flickr.com/ statsministerenskontor/ Photo: Simen Gald / https://creativecommons.org/licenses/by-nc/2.0/
Wealth tax remains. Ap wants to change the rules
Stoltenberg and Brenna do not agree to abolish the wealth tax altogether. However, Ap wants to reform it, including by changing the rules for valuing different types of assets. Brenna points out that current exemptions and reliefs create differences in the taxation of individual assets. According to her, this may direct capital to where the burden is lower, rather than where money generates greater economic activity. At the same time, Ap wants to preserve protections concerning homes.
Stoltenberg also points to the possibility of lowering certain rates in exchange for eliminating reliefs and loopholes. He recalls the 1992 reform, when the tax on corporate profits was reduced from 50 to 28 percent, while many exemptions were also limited. According to him, total tax revenue rose as a result. The changes currently under consideration are to include, among other things, the taxation of capital, wealth and shareholders. In January 2027, the government wants to present a document to the Norwegian parliament that is intended to pave the way for negotiations on a broader agreement.
Stoltenberg also points to the possibility of lowering certain rates in exchange for eliminating reliefs and loopholes. He recalls the 1992 reform, when the tax on corporate profits was reduced from 50 to 28 percent, while many exemptions were also limited. According to him, total tax revenue rose as a result. The changes currently under consideration are to include, among other things, the taxation of capital, wealth and shareholders. In January 2027, the government wants to present a document to the Norwegian parliament that is intended to pave the way for negotiations on a broader agreement.
Stoltenberg recalls that previous broad tax agreements were concluded in Norway in 1992, 2001, 2006 and 2016. Ten years have passed since the last one, so the minister believes the time has come for another attempt to develop lasting rules. He admits, however, that talks between the parties will not be easy.
How do you rate this article?
