Politicians from the Socialist People’s Party (SF), the Red-Green Alliance (Enhedslisten), and the Alternative Party (Alternativet) are demanding that the increasing economic leeway be used to improve welfare instead of providing tax cuts. The conservative parties in the Danish Parliament prefer to use parts of the 11.5 billion Danish kroner currently available to reduce taxes for citizens. In contrast, the three left-wing parties believe that the money should be invested in strengthening the welfare state, which they argue has been neglected for many years.
Pia Olsen Dyhr, the chairperson of SF, states that the money should be spent on improving conditions in critical sectors such as healthcare, daycare centers, and elderly care. “There is mold in the children’s cancer wards, a lack of educators in daycare centers, and insufficient time for each individual in elderly care,” she says. The government, composed of the Social Democrats, Venstre, and the Moderates, is facing an internal ideological conflict on how to allocate the economic leeway. Pia Olsen Dyhr warns against a compromise where the money is distributed to welfare, tax cuts, and economic gains for those who are already economically prosperous.
Pelle Dragsted from the Red-Green Alliance is not fundamentally against tax cuts if they benefit low- and middle-income groups. However, he points out urgent problems in the welfare system that need to be addressed first. He emphasizes the need for an economic agreement that ensures proper welfare for all citizens, especially in light of the current negotiations between the government, municipalities, and regions.
Franciska Rosenkilde, the political leader of the Alternative Party, points out that Denmark already has a strong economy, but there are still issues of discontent, inequality, and health disparities. She argues that investing in welfare should not only be seen as an expense but as a sustainable investment in societal well-being. On the other hand, Venstre’s chairman, Troels Lund Poulsen, has indicated that a portion of the 11.5 billion Danish kroner can be allocated to tax cuts.
The Liberal Alliance, the Danish Democrats, and the Conservatives have all expressed a desire for half of the funds in the increased leeway to be used to lower taxes. According to Alex Vanopslagh, the party leader of the Liberal Alliance, the issue of tax cuts is a fundamental issue.