TAXES ON THE RICH TO BE RAISED TO 55%
Rodgar Stenvik threatens to move abroad
11th November 2012 Last updated 04:32 Geadish Standard Time
DA HEGNER - Finance Minister Kjel Hammervik (Liberal Party) has announced that the next national budget will raise the income tax rate from 50% to 55% for all incomes above the level of Γ400,000 a year. "Such tax increases are necesesary as part of our plans to cut the deficit by 10 billion guilders. At the same time, it is important that we avoid making draconian spending cuts or raising taxes on the majority of the population at all costs. The Liberal Party will ensure the government does not get carried away with tax increases, however."
Prime Minister Andras Verbåten (SDLP) pushed for the plan, saying "We're not declaring war on the rich, but we're ensuring that everyone pays their share and contributes to society at a time when the gap between the rich and poor is widening. But I don't plan to raise it any higher."
The right-wing opposition parties have opposed the plain. Conservative Party leader Efa Nordland said that "Verbåten's government has done nothing but tax and spend. Relying on tax increases to keep the deficit under control does not work if the economy is contracting, because revenues will fall and force the government to raise them higher." The Progressive Party and CDP said that they would only support the plan if it was coupled with a cut to the basic tax rate and accused Verbåten of engaging in tax demagoguery".
A few notable businessmen and celebrities such as Valdmar Johansen, chairman of the Alliants-SG Group, and Rodgar Stenvik, a footballer, have threatened to move abroad if the tax increase was implemented. Verbåten said that "Many of these are just empty threats. A few high-profile celebrities will move abroad, but nearly all of them will stay behind. Besides, if they move abroad where do they want to go? Luziyca? Ha." He also responded seperate to the Progressives seperately "It is ironic they accuse me of demagoguery when you consider their views on immigration. "
Hammervik will not deliver the budget will not be delivered until next year. The centrist Liberal Party have a policy of agreeing to the stimulus spending proposed by the left-wing Social Democratic & Labour Party in return for keeping the deficit "no higher than 4% of the GDP" - currently Γ40 billion.