– We have never been the government that said that with us will come the big tax cuts, and that is what we will spend the big money on, says Støre to NTB.
This despite the fact that his own finance minister, Trygve Slagsvold Vedum (Sp), talked a lot about the tax and duty cuts the government will make before the budget presentation on Monday morning.
Støre calls the budget responsible, and says people have gained better purchasing power. He also believes that the budget lays the foundation for lowering interest rates – despite the fact that the government is now injecting far more oil kroner into the economy than Norges Bank had suggested in its analysis in September.
– What you get in tax cuts is one thing, but you’ve also got cheaper daycare, free after-school care, better pension settlements and more money for students. We have used the welfare state to secure people’s finances, says the prime minister.
Almost all environmental organisations, as well as several parties, have thundered against the climate investment in the government’s budget proposal. Støre takes it stoically calmly.
– The day the climate movement says that it was exactly what we had expected, then we are not doing our job. It is part of our democracy. They must always demand more, and that is part of their job, he says.
About the negotiations with SV, the Prime Minister says:
– They will certainly be direct and time-consuming, and that’s how it should be.
#Støre #big #tax #cuts
2024-10-08 14:22:16
Tax Cuts: A Divisive Issue in the 2024 Budget
As the 2024 budget takes shape, the topic of tax cuts has become a contentious issue. In a recent statement, Prime Minister Støre emphasized that his government has never prioritized big tax cuts as a primary goal [[website URL not provided]]. This statement may seem contradictory, given that the finance minister, Trygve Slagsvold Vedum, has been advocating for tax and duty cuts. However, it highlights the complexity of the budget proposal and the various competing interests at play.
According to Støre, the budget is designed to promote responsible governance, provide better purchasing power, and lay the groundwork for lower interest rates [[website URL not provided]]. However, this approach has drawn criticism from environmental organizations and other parties, who argue that the government is not doing enough to address climate change.
It’s worth noting that the budget proposal has also drawn comparisons to the tax policies of other countries, particularly the United States. As the 2024 US presidential election approaches, both candidates, Joe Biden and Donald Trump, have proposed plans for tax cuts [[https://www.cnn.com/2024/06/13/politics/tax-cuts-expiring-trump-biden/index.html]]. Trump, in particular, has been criticized for his ambitious tax cut proposals, which have raised concerns about their impact on the national deficit [[https://www.politico.com/news/2024/09/18/trump-tax-giveways-00179833]].
In contrast, Støre’s government has taken a more cautious approach to tax cuts, recognizing that the economic benefits of such policies are often outweighed by their social and environmental costs. By prioritizing investments in the welfare state, such as cheaper daycare and better pension settlements, the government aims to promote sustainable economic growth while addressing the needs of its citizens [[website URL not provided]].
Ultimately, the debate over tax cuts highlights the complexities of budget-making and the competing interests that must be balanced in the pursuit of responsible governance. As the 2024 budget negotiations continue, it remains to be seen how these competing interests will be reconciled and what the final outcome will be.
In the US, Democrats are taking a similar approach, exploring alternatives to traditional tax cut policies and seeking to shift the narrative around taxation and the economy [[https://www.taxnotes.com/tax-history-project/tax-history-democrats-have-been-losing-tax-fights-decades-will-next-year-be-different/2024/09/06/7l5s5]]. This approach may prove to be a winning strategy for the party, particularly if it can convince voters that the GOP’s tax cut policies are unsustainable and misguided.
As the 2024 budget continues to take shape, it will be worth watching how these competing interests play out and what the final outcome will be. One thing is certain, however: the debate over tax cuts will remain a contentious issue for the foreseeable future.
