Socialdemokratiet and SF propose that next year's planned tax cuts in the top tax bracket be postponed. Postponement would spare the state a DKK 1.5 billion loss of revenue.

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S and SF: postpone tax cuts

02. mar. 2010 10.48 English

Socialdemokratiet (S) and SF propose that next year's planned tax cuts in the top tax bracket be postponed.

The tax cuts would raise the cut-off for the top tax bracket by DKK 19,200 to DKK 409,100, and postponing them would spare the state a DKK 1.5 billion loss of revenue.

In order to comply with EU demands for orderly public finances, Denmark must lower the yearly budget deficit by DKK 24 billion in 2013.

A large portion of those funds could be found by postponing tax cuts in the top tax bracket, says Socialdemokratiet leader Helle Thorning-Schmidt.

- The government is knocking a DKK 10 billion hole in the national budget this year, and another DKK 10 billion next year, all because of these tax cuts. We are not saying we want to abolish the tax cuts, but we think that they should be postponed until such a time when Denmark can once again afford them, she says.

Translated by Martin Lamberth