WHAT DOES TAX REFORM 2012 MEAN FOR YOU – SEE CALCULATIONS
March 9, 2019
The government had actually set up a cooperation with the unit list on tax reform 2012 – But instead entered into an agreement with the Liberals and Conservatives, which means that a number of important elements in the tax reform will be changed.
Practically, the new tax reform plan means that it is better to be in work, as the tax relief that comes primarily will benefit people in employment. Losses are largely people on transfer income, who will find that their income does not increase by the same percentage as before. This means that they will experience reduced purchasing power, as income does not increase at the same rate as inflation.
Comparison of red and blue tax reform
Finansielt.dk has looked a little closer at what the main elements of the old and the new tax reform are.
- Increase of the top tax limit : Originally, it should be raised by approx. DKK 45,000 Now it will be raised with just under SEK 60,000 – This means that fewer people will pay top tax.
- Removal of Child Checks for High Payers : In the initial proposal, childcare was set aside for the highest paid. That part of the deal doesn’t change, so it lapses if you earn more than 760,000 a year.
- Lowering the state pension: In the original tax reform, the state pension was to be lowered by DKK 13,600. It has now been taken out of the agreement.
- Reduction of interest deduction for homeowners: Actually, there should have been less deduction for interest on mortgage loans. It has lapsed in the new agreement.
- Adjustment of transfer income: In the agreement with the Unit List, the transfer income should not be regulated – Now there will be less money for people on cash benefits and other transfer income.
- Extension of the employment allowance: The employment allowance is raised from 5.6 to 10.65%. The agreement with EL was for a swelling to 9.65%.
- Sugar and chocolate tax loss: In the original agreement, sugar and chocolate taxes were to be abolished. Now they are being expanded instead.
So what does the tax reform mean?
In real terms, tax reform 2012 offers almost NOK 7 billion in tax cuts. The Ministry of Finance has considered the consequences a little:
– A single old-age pensioner who lives in owner-occupied housing will have SEK 2,300 more a year when tax reform is fully implemented.
– Are you a single employee, and if you live in a rental home, then you will have SEK 3,550 more a year if you have a salary income of DKK 300,000.
– Are you a single employee with a wage income of DKK 195,000 annually, and if you receive cash benefits for half of the year, you need to spend money. You will get a total of SEK 1,200 less a year. The parties behind the agreement justify this because more people must be motivated to take a job.
– Those who make the most of the tax reform are a couple, with two children, interest expenses of SEK 131,000 annually and an income of SEK 530,000 each. This family type can look forward to having 24,000 more available per year.
– However, the highest-paid people must expect to get rid of money due to the tax agreement. Do you have a total income of 2.6 million. SEK and two children can expect that SEK 670 will be less to do each year when the tax reform is finally introduced.
Categories News , Tax Tags private finance , disposable income , tax , tax reform post Navigation Cancellation travel saves you a lot of money Calculate tax reform 2012