The Liberal-Conservative government’s tax reform plan will result in an estimated 50 billion kroner in tax cuts, most of which favour the nation’s biggest earners.
According to a study conducted by the Economic Council of the Labour Movement (ECLM), families taking home more than 405,000 kroner a year after taxes will receive an average tax break of 60,000 kroner. Those earning under that level will only get around 3,700 kroner more than before.
The government’s freeze, which began in 2001, kept both property taxes and retail taxes at their 2001 rates until now. In addition, the government has pushed through tax cuts on three occasions during the eight-year period.
ECLM’s study also showed that the wealthiest residents’ take-home pay increased far more than their counterparts during the tax-freeze period. While those in the over-405,000 kroner-a-year category saw their income rise by 9.6 percent during the eight years, average income for the nation’s poorest increased by only 6.7 percent.
The study showed the average middle class income increase since 2001 is around 7 percent.
