Gov’t admits breaking tax promise – cut them instead of raising them

Despite being elected on a platform of improved social welfare through tax increases to the tune of five billion kroner, the government has in fact lowered taxes, a Finance Ministry report delivered to parliament in June shows.

Since coming to power in 2011, legislation passed under the current government has led to 2.5 billion kroner in reduced state income, either due directly to reduced taxes or to changed behaviour as a result of new laws.

The left-leaning Enhedslisten, whose votes keep the minority coalition government in power, was disappointed that the government had not kept good on its promise.

A spokesperson for the prime minister’s Socialdemokraterne party admitted that the government had broken its promise but defended the tax cuts, saying they promoted growth, which would lead to increased revenue as employment rose.


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