Rõivas rejects 400-euro tax-free-minimum

Taavi Rõivas (left) and Jevgeni Ossinovski (Postimees/Scanpix)
8/7/2015 10:00 AM
Category: Politics

The Reform Party board is due to meet today to discuss the 15 proposals made by the Social Democrats (SDE) to the coalition agreement, which was signed between the two parties and IRL. Reform Party Chairman Taavi Rõivas said one proposal, to double the monthly tax-free-minimum, is definitely off the table.

“We are open to discuss topics which are not in the coalition agreement, of course. But a great deal of the SDE proposals are in one form or another already in the coalition agreement. Even they can be discussed, but I am certain the Reform Party will not support an increase in income tax,” Rõivas said.

New Social Democrat Chairman Jevgeni Ossinovski opened up debate on the coalition agreement, which was only signed in April, shortly after being elected to lead the party two months ago. The doubling of the tax-free minimum is the most costly proposal, with Ossinovski proposing to increase income tax by 3-4 percent to pay for it.

Rõivas said the move will leave less money in peoples' pockets and will have a negative impact on the nation's economy. He said economic growth and salary growth will also suffer.

“Certainly we have, in the current government, made the reverse steps, to decrease labor taxation. So no one should assume we will now back the idea,” Rõivas said.

IRL discussed the proposals a few days ago, but did not make a decision.

The board of the Social Democrats will also meet in a few days to discuss the response by its coalition partners.

J.M. Laats

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