TIGHTENING TO: Red leader Bjørnar Moxnes. Photo: Frode Hansen
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Red leader Bjørnar Moxnes wants to join the red-green parties in sharp tax increases to finance new welfare reforms.
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During a press conference at Hotel Bristol in Oslo, Rødt leader Bjørnar Moxnes and deputy leader Marie Sneve Martinussen presented the party’s proposal for a new tax scheme for the next parliamentary term.
In the plan, the party proposes a sharp escalation of taxes. According to the party’s own calculations, taxes will increase by NOK 28.9 billion already in 2022, compared to the current level.
By 2025, Rødt will have tax increases totaling NOK 47.9 billion.
– We want to increase taxes for the rich and strengthen the welfare of most people, says Moxnes.
Red has made strong measurements in recent months. Party leader Bjørnar Moxnes has previously opened up to support a red-green government through a co-operation agreement – and through budget support in the Storting.
—-PRESS CONFERENCE: Red leader Bjørnar Moxnes and deputy Marie Sneve Martinussen. Photo: Frode Hansen
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Increased taxes and new inheritance tax
The biggest measures in Rødt’s tax plan are:
- An escalation of the level of corporation tax from the current 22 percent – to 26 percent in the state budget for 2026. According to the party, this will provide NOK 14.8 billion in increased room for maneuver.
- Increased tax on income over NOK 600,000. According to Rødt, this will give NOK 11.3 billion more in the treasury already in 2022.
- Increased and more progressive wealth tax, which according to Rødt will provide NOK 14.1 billion in increased room for maneuver.
- Increased tax on dividends and removal of the so-called shielding deduction, which reduces taxable share income. According to Rødt, this will provide NOK 6 billion in increased revenues from 2022.
- Introduce a new inheritance tax. Here, Rødt has not landed on a model, but outlines a progressive tax with a bottom deduction of NOK 5 million, where inheritance between NOK 5–10 million is taxed at 10 per cent, inheritance between NOK 10–100 million is taxed at 15 per cent and inheritance over NOK 100 million. NOK is taxed at 25 percent. According to Rødt, such a model can provide NOK 2-3 billion in increased government revenue per year.
To finance dental health reform
Among other things, Rødt will use the large tax increases to finance one of the party’s most important election campaign promises: Free dental health for all.
Red also demands that a new red-green majority terminate the tax settlement from 2016. At that time, the FRP, the Center Party, the Conservatives, the Labor Party, the Liberal Party and KrF agreed on a tax settlement that established some principles for the tax system. In addition, the parties agreed to lower more taxes.
– We must increase the tax on corporate profits and remove the discount on wealth tax. It goes first and foremost to the shareholders. Some people try to call it “working capital” as if it is the shares, not workers, who work, says Moxnes.
The agreement in the tax settlement included, among other things, lowering corporation tax and personal tax to 23 per cent by 2018. Since then, this has been reduced further to 22 per cent.
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