Alliance proposes tax cuts with budget surplus
Three conservative parties in Denmark – the Liberal Alliance, Danish Democrats, and Conservatives – are in agreement that at least half of an expected budget surplus should go towards tax reductions, even though the exact increase amount is unspecified. This stance has met with criticism from a government party. The surplus, known as ‘fiscal room for maneuver’, can be allocated to tax cuts or new investments. Liberal Alliance’s leader is open to negotiations on which taxes to cut. Danish Democrats suggest abolishing certain levies affecting cost of living, especially in rural areas, while the Conservatives aim to reduce income tax. Despite their united front on tax relief, the Social Democrats highlight the three parties’ disagreements on economic matters and query the practicality of their proposal.