On Tuesday, the Liberal Party presents its alternative to the national budget. It contains a proposal to increase child benefit by NOK 8,000 a year. Without the state being charged a single kroner.
The increased rates are to be financed by those with high incomes by taxing their child benefit.
– If child benefit is to be increased to help them with major financial challenges, it is expensive. Many who receive child benefit have good advice, argues deputy leader of the Liberal Party, Sveinung Rotevatn.
The Støre government has did not propose increases in child benefit in its state budget. The explanation is a tight budget. At the same time, the opposition has including Redargued that child benefit is more important than ever.
They are supported by professionals.
Evens out the differences
According to Statistics Norway, increased child benefit may have contributed to the leveling off of the proportion of low-income families. Economist at BN bank, Endre Jo Reite believes that child benefit will become more important for more people in the future.
– For an increasing number of families with children, child benefit can make the difference in whether the finances go round in a tight everyday life, said Reite in an interview with Vårt Land in September.
Rotevatn believes Venstre’s proposal will only affect those with a high income.
– You can have good advice without a high income, how will you adjust for such irregularities?
– If you have high wealth, it is often because it is tied up in companies. If you sell those assets, it becomes income, and then you have to tax it, says Rotevatn, who has confidence that the wealth tax will regulate any irregularities.
But Venstre’s proposal is not new. Several parties have previously considered the possibility of taxing child benefit.
For an increasing number of families with children, child benefit can make the difference in whether the finances are going around in a tight everyday life
— Jo Reite, BN Bank
- When KrF entered government in January 2019, the ordinary rate for child benefit for all children was NOK 970 a month. It had done so since 1996.
- In March 2019, child benefit for all children increased from NOK 970 to NOK 1,054 a month.
- On 1 September 2020, the rate was again adjusted upwards, this time to NOK 1,354 a month. But only for children under 6 years of age.
- From 1 September 2021, child benefit for those aged 0-6 increased to NOK 1,654 a month.
- From 1 January 2022, child benefit increased to NOK 1,676 for children under the age of 6. Children over the age of 6 now receive NOK 1,054 a month.
Possible to gather around
The Conservative Party expressed skepticism when the FRP proposed taxing child benefit in 2018.
– I am skeptical that families will end up worse off than today, said the then spokesperson for family policy in the Conservative Party, Kristin Ørmen Johnsen to Dagsavisen.
– What is the reason why you did not launch this proposal when you were in government, Rotevatn?
– When you are in government you have to compromise and work together.
Rotevatn adds that the party voted for taxation of child benefit at the national meeting before the election in 2021.
He hopes other parties can be inspired by Venstre’s move.
– This move is social without going beyond the state’s expenses. It should be something that all parties can rally around, believes Rotevatn.
This move is social without going beyond the state’s expenses. It should be something that all parties can rally around
— Sveinung Rotevatn, deputy leader of Venstre
Children’s Minister Kjersti Toppe (Sp) acknowledged recently to Vårt Land that child benefit is unevenly distributed between the eldest and youngest children. The left’s proposal does not even out these differences, but involves a significant increase for both groups.
Does not increase the tax burden
The supplement of NOK 622 per month for children under the age of six will remain as before. With Venstre’s proposal, this means that they will receive NOK 2,300 a month, while children over the age of six will receive NOK 1,680 in monthly child benefit.
The party has not yet decided exactly how the taxation will take place, but Rotevatn can state that it is those with an income of more than 700,000 who will feel the taxation of child benefit.
– Your former government partners Frp and Høyre are not known to be supporters of higher taxes, do you think this proposal will be palatable to them?
– We are not going to increase the tax burden, but are planning a fairly similar scheme to today, where those of us with very high salaries take the biggest burden, he says.