HomeDanish PoliticsDanish leader proposes tax cuts with increased economic flexibility.

Danish leader proposes tax cuts with increased economic flexibility.

Chairman of Venstre (Left), Troels Lund Poulsen, wishes for a portion of the increased economic leeway to be used for tax cuts. He finds it difficult to imagine an agreement within the government regarding the distribution of the newly found funds without some of them being returned to the Danish people in the form of tax cuts. In an interview with Jyllands-Posten, Troels Lund Poulsen states that the series of tax cuts has not yet been specified, neither in amount nor in types. He points out that it could take the form of tax cuts for both individuals and businesses. “Some of the money should go back to the Danes,” he tells Jyllands-Posten without specifying an exact percentage. The chairman also emphasizes that funds should be allocated to both welfare and green transition.

The fiscal leeway has just been increased by 11.25 billion Danish kroner by 2030, primarily due to increased employment among young people, the elderly, non-Western immigrants, and foreigners. This adjustment was announced by Minister of Finance Nicolai Wammen (S) last Friday. While it has become clear that there is more money to work with, not many details have been provided yet on how the funds will be used. At the moment, the minister of finance has not mentioned tax cuts as an option. The leeway, which is the state’s expected economic surplus by 2030, is the prediction of how much money can become available for use. According to the latest projection, the total leeway is almost 58 billion Danish kroner, of which 11.25 billion Danish kroner can be used for new investments. The rest is already allocated for political initiatives until 2030. The leeway has been increased three times in under a year and a half by over 30 billion Danish kroner.

Read the danish version here

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