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News in english 13. jun. 2012 KL. 10.29

Liberals under fire on tax reform

The Liberal Alliance says Lars Løkke Rasmussen’s plan is hocus-pocus

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The Liberal Party is under pressure from both sides of Parliament in connection with its negotiating plans up to negotiations for a tax reform.

The government plan for the Danish economy up to 2020 is to allow public spending to grow by 0.8 per cent and to carry out a string of reforms that will provide some DKK13billion.

The Liberals say they want to use all DKK13billion on reducing taxes – but the Liberal Alliance Leader Anders Samuelson tells Berlingske today that the idea is an impossible one.

“Pure hocus-pocus to continue to suggest that it is possible to maintain a 0.8 per cent growth and give tax cuts of DKK13billion. It just can’t be done,” Samuelson tells Berlingske. He goes on to call his candidate for prime minister economically irresponsible to have the same spending growth rate as the current centre-left government.

Several of Denmark’s leading economists have also said that the Liberals must reduce their figures by some five billion kroner if the sums are to add up.

The government parties are also highly critical of the Liberal proposal.

Finance Minister Bjarne Corydon (SocDem) says the Liberals have some explaining to do. Social Liberal Group Chairwoman Marianne Jelved says that the Liberal proposals for an economic policy are incompetent and the Socialist People’s Party Political Spokesman Jesper Petersen says the Liberals are ‘deeply irresponsible’.

Former Prime Minister Lars Løkke Rasmussen tells Politiken he is not prepared to disclose the amount he would set aside for tax cuts.

“That is what you do in negotiations – if there are any negotiations,” he says.

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Edited by Julian Isherwood