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Bill Gates: Finance tax should aid world’s poor

Bill Gates was the star attraction at a German Social Democratic Party (SPD) meeting in Potsdam on Monday, calling for world hunger to be fought with taxes raised on financial transactions.

Bill Gates: Finance tax should aid world's poor
Photo: DPA

SPD lead Sigmar Gabriel said at the meeting he stood behind the European Union plan to invest 0.7 percent of gross domestic product (GDP) in development policies.

Microsoft founder Gates, one of the world’s richest men, has long focused his efforts on the Bill and Melinda Gates Foundation which funds health and education projects around the world.

He was invited to the Potsdam meeting of the centre-left SPD leadership meeting to talk with them about the foundation. He called for Germany and Europe not to abandon their contributions, despite the financial crisis.

Speaking ahead of the meeting Gates said the world was on the brink of great victories in the fight against illness and global poverty. “Germany plays a decisive role in enabling us to bank on success,” he told the SPD paper Vorwärts (Forwards).

“Development aid only counts for a fraction of public spending in most donor countries. Cuts in this area will not solve our budgetary problems,” he said.

He said that great strides had been made in public health matters over the past 20 years – with the number of children dying before the age of five shrinking from 20 million in 1960 to less than 6.9 million in 2011.

But enormous differences remained. “We still have a long way ahead of us to ensure that every child that is born has the same chance of a healthy life regardless of whether it is born in a rich or a poor country,” said Gates.

DPA/The Local/hc

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Beskæftigelsesfradraget: What is Denmark’s employment allowance?

Denmark's government may soon announce changes to its tax reform plans, which will give all wage earners a bigger employment allowance. What is this and how will it affect foreigners' earnings?

Beskæftigelsesfradraget: What is Denmark's employment allowance?

What is the employment allowance? 

The Beskæftigelsesfradraget (from beskæftigelse, meaning employment, and fradrag, meaning rebate) was brought in by the centre-right Liberal Party back in 2004, the idea being that it would incentivise people to get off welfare and into a job.

Everyone whose employer pays Denmark’s 8 percent AM-bidrag, or arbejdsmarkedsbidrag, automatically receives beskæftigelsesfradraget. Unlike with some of Denmark’s tax rebates, there is no need to apply. The Danish Tax Agency simply exempts the first portion of your earnings from income taxes. 

In 2022, beskæftigelsesfradraget was set at 10.65 percent of income with a maximum rebate of 44,800 kroner. 

How did the government agree to change the employment allowance in its coalition deal? 

In Responsibility for Denmark, the coalition agreement between the Social Democrats, the Liberals and the Moderate Party, the new government said it would set aside 5 billion kroner for tax reforms.

Of this, 4 billion kroner was earmarked for increasing the employment allowance, with a further 0.3 billion going towards increasing an additional employment allowance for single parents.

According to the public broadcaster DR, the expectation was that this would increase the standard employment  allowance to 12.75 percent up to a maximum rebate of 53,600 kroner. 

How might this be further increased, according to Børsen? 

According to a report in the Børsen newspaper, the government now plans to set aside a further 1.75 billion kroner for tax reforms, of which nearly half — about 800 million kroner — will go towards a further increase to the employment allowance. 

The Danish Chamber of Commerce earlier this month released an analysis in which it argued that by raising removing all limits on the rebate for single parents and raising the maximum rebate for everone else by 20,300 kroner, the government could increase the labour supply by 4,850 people, more than double the 1,500 envisaged in the government agreement. 

According to the Børsen, the government estimates that its new extended allowance will increase the labour supply by 5,150 people.  

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