Wednesday, July 24, 2013

Tax Blunder

Right idea how municipalities should get back the money they lose when the party will remove wealth tax.





In 2011 Norwegian municipalities served more than 8.1 billion on capital tax.
But Rome Blad claimed Conservative tax policy spokesman Gunnar Gundersen that this is not true.
After the newspaper described Labor two mayors who feared the consequences if they lost income from wealth tax, passed Right-top to the frontal attack:
"Have these mayors really talked about property tax? Removal or reduction of income tax will not affect municipalities. It is the government, "he wrote in an email to the newspaper.
But it is completely skivebom.
Figures from Statistics Norway Ministry of Finance has worked on behalf of Labor show that Norway's 428 municipalities on average earn 19 million each.
Most are Conservative controlled Oslo, with about 2.1 billion annually.
- I have no idea what happened. I fool myself fully. It's embarrassing, simply, says Gunnar Gundersen told VG.
- I had not been drinking, but it was late at night and I sent the email without having to think about it, explains Right-top, which is among the key people at Right presents its alternative budget.
But having had three days to collect himself, the party who plans to take government power to fall still does not explain how the municipality's revenues are obtained.
- The state budget is growing at over 50 billion a year, so over time we will be able to recoup this money from the weight only.
- Keep Right cut an expense to cut an income?
- Not necessarily. We can reprioritize the state budget. There is huge room for it. We can streamline, cut in agricultural subsidies or other things.
- But how do you concretely replace the more than eight billion that municipalities receive from wealth tax?
- We need to increase transfers to municipalities equivalent to what they are today.
- But you can not say exactly where the money will come from?
- No, we have to see when we will be working with the state budget, says Gundersen.
Conservative tax policy spokesman can not promise that municipalities will receive as much revenue with the Conservative government, as they have today.
- We will guarantee that loss should be compensated.
- How do you do that when capital tax revenues vary from year to year?

NO ACTION: Conservative tax policy spokesman Gunnar Gundersen against property taxes, but have no solutions for how Right to replace the more than eight billion that municipalities receive from wealth tax. Photo: MARTIN NILSEN
- We have not sat down and thought through this concrete. There are certainly some complex calculations that need to, but we do not have it now.
- But you can not guarantee that municipalities will receive as much revenue as today?
- No, I can not guarantee that it will be the same amount as today. But in total, revenues total compensation. So this will probably turn out differently for the various municipalities.
- Why did not this calculation clearly?
- We have not given much thought to the municipal portion beyond that revenues will be fully compensated, says Gundersen.
City council leader Stian Berger Røsland (H) in Oslo is not worried that the city will lose money on a Conservative government.
- I also think Gunnar Gundersen agree that loss should be compensated by the state. For Oslo is important because we have the majority of our revenues from taxes, says Røsland.

Top 10: Wealth Tax

These municipalities have the greatest income from wealth tax.

Figures from 2011:
Oslo NOK 2,104,354,827
Bergen £ 531 332 709
Bærum £ 457 444 909
Stavanger £ 336 279 300
Asker £ 287 626 500
Trondheim £ 233 748 327
Kristiansand £ 164 268 873
Sandnes £ 100 606 036
Alesund £ 94,834,473
Drammen £ 93,915,309
Source: SSB / Finance

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