DI proposes 2030 plan for the economy

The Confederation of Danish Industries (DI) wants the government to take action on tax cuts as a means of increasing the labour supply. In a new proposal for a 2030 plan for the Danish economy, the organisation proposes tax cuts totalling around DKK 15 billion. By comparison, the government plans tax cuts of at least five billion kroner. “It’s to get hands in [Ed: to the market] and make it attractive to work. We experience that the government is saying the same things, but here we are proposing to do something about it,” says Emil Fannikke Kiær, political director at the Confederation of Danish Industries. “It’s more a question of making it more than just a moral discussion where we think there are things you can do to increase the supply of labour – and that’s to reduce taxes on labour, for example.”
     The Confederation of Danish Industries believes that its plan will increase the labour supply by 12,500 Full-time Equivalents (FTEs). This is done, among other things, by phasing out the top tax, avoiding a new top-top tax, changing the employment allowance and by allocating more money to easing the top marginal taxes. Several proposals lean on those of the government, albeit by larger amounts. The Confederation of Danish Industries, like the government, would increase the employment allowance. However, to 12 percent for a maximum of DKK 60,000 against the government’s proposal of 12.75 percent for a maximum of DKK 54,600. Also, the organisation proposes an additional employment deduction for single parents. /ritzau/