First Reading of the Draft Act on Amendments to the Income Tax Act (Bill 172 SE)
Session: 15th Riigikogu, 3rd sitting, plenary session
Date: 2024-01-17 18:44
Participating Politicians:
Total Speeches: 17
Membership: 15
Agenda Duration: 14m
AI Summaries: 17/17 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The first reading of Bill 172 on the amendment of the Income Tax Act, initiated by Kalle Grünthal and Varro Vooglaid, took place in the Riigikogu (Estonian Parliament). Kalle Grünthal (WeJj4SPnuVY), the presenter of the bill, focused his address on extensively criticizing the government's planned tax hikes, arguing that they would reduce people's net incomes, hinder consumption and investment, and encourage the spread of under-the-table payments. Grünthal emphasized that to revitalize the economy, income tax should actually be lowered, not raised, referring to the basic tenets of economics. His speech was at times very personal, including direct addresses and discussions with specific colleagues.
However, Annely Akkermann (OYObvaclAIE), Chairman of the Finance Committee, pointed out that the initiator of the bill failed to introduce its actual content. According to Akkermann, the main substance of the bill was the reduction of the corporate income tax rate for legal entities to 3%. The committee found that such an amendment would create an uncovered deficit of several billion euros in the state budget, which is why a motion was made to reject the bill. During the short debate, Grünthal accused the coalition of a similar lack of economic analysis in their own draft legislation, to which Akkermann reiterated that a 3% income tax rate would totally jeopardize the state's finances.
Decisions Made 1
Bill 172 was defeated during its first reading. The vote count was 32 for, 5 against, with zero abstentions.
Most Active Speaker
The most active politician was the presenter of the bill, Kalle Grünthal (pid: WeJj4SPnuVY). His presentation was characterized by strong rhetoric aimed at widespread criticism of the government's tax policy. Grünthal used his time to explain the negative economic consequences of the tax hikes, often personally addressing other members of the Riigikogu (e.g., Jürgen Ligi, Annely Akkermann, Ants Laaneots), thereby creating an unconventional and at times humorous debate atmosphere.
Grünthal represented the opposition's position, being both the initiator and defender of the bill. Although he did not focus on the technical content of the bill, his role was central in launching the debate and sharply criticizing the coalition's policy. He also asked the only question directed to the representative of the Finance Committee.
Aseesimees Jüri Ratas
AI Summary
We proceeded to agenda item 28, under which the initiated Draft Act 172 amending the Income Tax Act received its first reading. Following this, Riigikogu member Kalle Grünthal was invited to the rostrum to deliver his report.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal is trying to open the water bottle.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas offered assistance and stated that it was muddy water.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal is asking whether it comes with fizz or not.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas said that times are tough.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Grünthal argues that the rise in income tax will reduce people's net incomes, as well as consumption and investment, consequently causing economic growth, business activity, and the labor market to shrink.
Aseesimees Jüri Ratas
AI Summary
The speech centers on welcoming the speaker.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal claims that lowering income tax could increase people's net income, boost consumption and investments, and thereby improve employment and the national economy, but he emphasizes that the impact depends on numerous factors and might affect employers' capacity to pay wages, potentially leading to economic hardship.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas confirms that the speech will last 9 minutes and 28 seconds.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal says that it is good to work in the Riigikogu, and recommends quickly adopting the bill, saying "Pinn!" and asking his colleagues to approve it.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas called upon Annely Akkermann, the Chair of the Finance Committee, to the Riigikogu rostrum to give a presentation.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann said that the committee decided to reject the draft bill, which seeks to raise the corporate income tax rate for companies to 3% and include an analysis for budget coverage, while emphasizing that the tax would not bankrupt any company.
Aseesimees Jüri Ratas
AI Summary
Ratas thanks the server and asks Kalle Grünthal to ask at least one question.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Grünthal noted that the draft bill lacks economic analysis, and the same deficiency is present in the coalition agreement and other proposals. He then asked why they are criticizing when they themselves fail to see the log in their own eye and the speck in the other's.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann noted that the draft bill proposes a 3% income tax for legal entities, and if it were to become law, it would completely derail the state budget. Consequently, the Finance Committee does not support the bill and recommends its rejection.
Aseesimees Jüri Ratas
AI Summary
The rapporteur, Deputy Speaker Jüri Ratas, moved a motion to reject Bill 172 at the first reading and requested that the vote begin.
Aseesimees Jüri Ratas
AI Summary
Draft Law 172 was rejected at the first reading and dropped from the proceedings. The result was 32 votes in favor, 5 against, and there were no abstentions. The 28th item on the agenda has thus been addressed.