From Iceland — "Wealth Tax" To Be Unextended

“Wealth Tax” To Be Unextended

Published August 26, 2013

The Minister of Finance has announced that a temporary “wealth tax” that was placed by the previous government on those earning between 75 and 100 million ISK will be allowed to expire. Both the Finance Minister and the Prime Minister stand to benefit from the move.
In 2010, the previous government created a “wealth tax”. Intended to be used until 2014, the tax was levied against households earning more than 100 million ISK, or individuals earning more than 75 million ISK, per year.
DV now reports that, despite the national treasury in sore need of funds – which has prompted proposed cuts in education and national broadcasting – Independence Party chairperson and Minister of Finance Bjarni Benediktsson announced that he will not extend the wealth tax further.
Bjarni told reporters that the tax was only meant to be temporary anyway, and he furthermore believes it violates the constitution.
However, DV is also quick to point out that those who stand to benefit from the expiring of the wealth tax include Bjarni, as well as Prime Minister Sigmundur Davíð Gunnlaugsson, and MPs Jón Gunnarsson, Pétur Blöndal and Kristján Möller.

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