SHOULD AVOID EXTRA TAX NOW: Prime Minister Jonas Gahr Støre (Ap). Photo: Helge Mikalsen / VG
The government does not seem to understand how harmful additional employer’s tax is. Now the budget’s worst idea should be killed.
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This is a leader. The leader expresses VG’s position. VG’s political editor answers to the leader.
New inventions are not always good. Now is the time to scrap the worst and at the same time most innovative idea in this year’s state budget.
This year, a five per cent extraordinary employers’ tax was introduced on salaries over NOK 750,000. This additional tax is estimated to cost companies almost NOK 8 billion this year.
In the state budget for 2023, the scheme is described as “a measure that will contribute to covering extraordinarily large expenses in the state budget”. A measure born in panic, in other words.
Last week, the government gathered for the budget push. Finance Minister Trygve Slagsvold Vedum (Sp) has stated that there is more room for maneuver in next year’s state budget.
But the government has not yet clarified whether this means that the so-called situational additional tax will disappear.
And Industry Minister Jan Christian Vestre suggests almost the opposite, when he NRK states that it must be phased out only “gradually”.
WANTS TO GET RID OF TAX: Even Kari Elisabeth Kaski (SV) says the increased employer’s tax is undesirable. Photo: Maud Lervik / VG
If the extra burden is only carefully adjusted down, doubts will arise as to whether it will ever disappear completely. It is unsustainable. More companies then have to factor the extra bill into their long-term planning.
It does not bode well for Norwegian employment and earning capacity over time. This does not bode well for the recruitment of highly skilled or specialized labour. And it does not stimulate bosses’ ability to give employees a generous salary.
This is also seen by the parties in working life. Both LO and NHO expect that increased employer’s contribution will be history when a new proposal for the state budget is presented on 6 October.
Before the weekend, even the tax-tolerant SV made it clear that they too want to euthanize the additional tax. The government’s preferred budget partner timely points out that the budget item is damaging the restructuring in the business world.
Every day without clarification is also harmful to companies’ own work with realistic budgets for next year. And killing many of a company’s new investments.
Now the government must listen. Støre’s crew must urgently communicate that the extra tax will be removed from New Year’s. Money to cover the budget must be obtained elsewhere.
The treasure that came out of the blue should die now.
SV asks the government to remove additional employer’s taxPublished:
Published: 04.09.23 at 17:58
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2023-09-04 15:58:53
#Leader #Støres #panic #tax
