Economic policy Alternative budget revealed: Coalition Party would reduce income taxes by EUR 800 million and save on housing subsidies, among other things

The opposition party, the Coalition Party, calculates that its alternative budget would strengthen public finances by about 1.55 billion euros, taking into account the employment effects more.

Opposition party In its alternative budget published on Friday, the Coalition Party proposes income tax cuts of more than one billion euros.

The party option also includes several savings on social benefits. According to the Coalition Party, the goal is to break down incentive traps.

Among other things, the party would restore unemployment security and housing benefits to the 2019 level. The former would save EUR 66 million and the latter EUR 92 million. In addition, it would reform the entire housing subsidy, which it said would save € 350 million.

The Coalition Party would also increase the deductible for housing costs, which it calls moderation, and stagger earnings-related unemployment insurance according to its duration. It would shorten the earnings-related one hundred days and return the number of deductible days to seven.

Party calculates that its option budget would strengthen public finances by around € 1.55 billion compared to the government option. So much less would be needed to take on debt.

If the improvement in employment is included, public finances would be strengthened by 2.5 billion euros, it says, referring to the calculations of the parliamentary information service.

According to the Coalition Party, the level of expenditure would decrease by about EUR 2,080 million. The revenue side, on the other hand, would decrease by approximately EUR 530 million.

The party would invest in, among other things, research and development, the funding of which it would strengthen by EUR 200 million. In addition, it estimates, for example, that it will provide EUR 75 million more for services for the elderly than the government.

“The policy of the left-wing government is based on and will lead to accelerating indebtedness, tax increases and the gradual loss of our well-being,” the chairman said. Petteri Orpo said at the launch.

“The direction of politics must be changed so that Finland is a prosperous country at the end of this decade as well.”

Party less than EUR 800 million of the promised tax cuts would be income tax cuts.

These would be done by increasing the amount of the income reduction to 2026 euros. In addition, taxation would be steadily reduced on all earnings and pensions by EUR 600 million.

The party would finance part of the income tax relief by ending the accumulation of a pension from earnings-related unemployment insurance. According to a calculation received from the Parliament’s information service, the reform would strengthen public finances by about EUR 400 million.

In terms of taxation, the Coalition Party would also make a permanent contribution to improving the household reduction and implement the improved household reduction for those over 75 years of age.

At the same time, various harmful taxes would be added. For example, the tobacco tax would be tightened and the soft drink tax would be expanded. Overall, the Coalition Party calculates that taxation would be reduced by EUR 530 million.

Chairman of the Coalition Parliamentary Group Kai Mykkänen anticipates that the party will receive criticism for its policy, which is considered harsh, due to its alternative budget and that many will be cut.

“[Eduskunnan] The analysis of the information service says that even statically, without assuming that anyone would get a job, three-quarters of Finns would benefit financially from this option compared to the government’s proposal, ”he said.

In addition, there would be effects on employment, he added.

Regarding employment, the Coalition Party states that the target should be an employment rate of 80% by the end of the decade.

It calculates that more than 100,000 jobs could be created on its list of employment measures.

“We want to reduce poverty so that people can get on their own feet and not so that debt is used to try to breathe artificially by raising support levels, where the head will be in the lead,” Mykkänen said.

In alternative budgets opposition parties have the opportunity to tell how they would use public funds unlike the government.

Budgets thus reflect the priorities of economic policy and the political choices of parties.

At the same time, they are always unrealistic: no party can actually get all its own wishes in government, but compromises have to be negotiated.

The Christian Democrats presented their alternative budgets as the first opposition party on Tuesday. Next week it’s the turn of the Basic Finns.

Alternative budgets will be discussed in the plenary session of Parliament in early December.

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