Labour (Ap) is likely to adopt tax increases of NOK 15 billion at its national convention this weekend. The party does not understand that this hampers restructuring, Erna Solberg says.
– The greatest damage is to the restructuring process, the Prime Minister and Conservative Party leader told NTB, and elaborates:
– We are now in a situation where Norway needs more risk-oriented investments and research and development in companies. If more and more capital is extracted from the Norwegian-owned companies, it becomes more difficult to be a Norwegian owned company and to develop ideas.
Thursday the National Congress of Labour starts, which will vote on the tax proposal. Probably Labour will go into the general election with the intention to reverse 15 of the 21 billion NOK that the so-called blue-blue Government has given in tax cuts since 2013.
The main reason is that the cuts according to Labour mainly have benefited Norway’s richest, and that the public need these billions to create better welfare services.
The foreigners’ gains
During the eight years of so-called red-green Government, Labours mantra was that taxes should remain at the 2004 level. But now the party’s program committee, among other things, increase the tax on possession by NOK 5 billion and other taxes by a similar amount.
The tax on possession leaves Norwegian companies at a disadvantage, Solberg says.
– You must have higher returns in a business owned by a Norwegian than in a company owned by a foreigner, for a company to earn the same, she said.
Solberg points out that both cuts in corporation tax – which the Government has done with support from Labour – and increased tax on possession – which Labor proposes – is favourable for foreign companies.
The Conservatives goes to the election on “moderate” tax cuts, without quantifying this.
Both Labour and the Socialist Party have called for evidence that the cuts in the possession tax have an effect, which the government has failed to put forward.
– There are more investments in mainland Norway’s industry in 2016 than it has been previously. But it is very difficult to analyze the effect of each measure, Solberg says.
Source: NTB scanpix / Norway Today