Imagine that 30 percent of your income was taxed without deductions. The members of Inatsisartut discussed this on Monday 8 June.
Aqqalu C. Jerimiassen (A) is behind the inquiry debate. He wants to introduce the “flat tax” tax system. He proposed this during the election campaign leading up to the Inatsisartut election last year.
Imagine that 30 percent of your income was taxed without deductions. The members of Inatsisartut discussed this on Monday 8 June.
Aqqalu C. Jerimiassen (A) is behind the inquiry debate. He wants to introduce the “flat tax” tax system. He proposed this during the election campaign leading up to the Inatsisartut election last year.
The proposer believes that it is a good idea that all citizens, regardless of income, pay 30 percent tax without deduction.
– Everyone will experience a noticeable improvement in the amount available, without this necessarily requiring large shifts in the Finance Act, says the proposer.
Naalakkersuisoq: Low-income groups will pay more
If the tax was arranged as has been presented, it will not lead to everyone getting more, says Naalakkersuisoq for finance and taxes, Aqqaluaq B. Egede (IA). In doing so, he contradicts Atassut’s chairman.
– A gross tax will increase economic inequality in society. Low- and middle-income groups will pay more in taxes than today, whereas taxes will decrease for high-income groups, says Aqqaluaq B. Egede.
He explains in his post that a person with an annual income of DKK 160,000 will pay DKK 9,300 more in tax than today, while a person with an income of DKK 500,000 will pay DKK 34,900 less in tax if the tax reform were to become a reality.
A burden on the national treasury
If everyone starts paying a uniform tax of 30 percent without deductions, it will probably mean that the national treasury will receive 600 million kroner less in revenue per year, says naalakkersuisoq.
– This is therefore a tax relief which will make it necessary to raise higher income in other areas or lead to significant savings in the public sector. It will have far-reaching consequences for our society, says Aqqaluaq B. Egede.
During the debate, Aqqalu C. Jerimiassen did not comment or suggest how his proposal should be financed.
This is what Erik Jensen from Siumut points out.
– Siumut believes that if significant tax reductions are to be implemented as part of an economically responsible policy, it must be clearly presented how they are to be financed, he says.
The coalition is against it
The proposal from Atassut is not assessed as a good idea by the party’s partners.
– They must not end up affecting those who already have the least. Therefore, Demokraatit cannot support Atassut’s model of a flat tax without deductions, says Margrethe Thårup Andersen (D).
Ane Hansen (IA) says that the Inuit Ataqatigiit do not want it either, as the consequences of the tax cut will make it more expensive for the most disadvantaged.
