Agenda Profile: Madis Kallas

Third reading of the Draft Act on Amendments to the Income Tax Act (443 SE)

2024-07-29

The 15th Riigikogu, extraordinary session of the Riigikogu.

Political Position
The political stance is one of strong support for the draft amendment to the Income Tax Act (443 SE), which is viewed as the first step toward reducing regional inequality and settling a long-standing debt. The most significant problem is identified as Estonia's unbalanced development, resulting from the concentration of tax revenue in and around Tallinn and Tartu. This position is clearly policy- and value-driven, underscoring the necessity of taking concrete action.

2 Speeches Analyzed
Topic Expertise
The speaker demonstrates expertise in regional policy and the financing of local governments, highlighting the loss of tax revenue from rural areas due to the movement of the working-age population. They employ specific terminology (tax revenue, regional inequality) and offer a detailed description of the life cycle of rural areas (July Estonia versus the reality of autumn).

2 Speeches Analyzed
Rhetorical Style
The rhetorical style is formal yet emotional, creating a contrast between the idealized "Estonia in July" and the autumn reality of emptying rural areas. The tone is optimistic regarding the step taken, but it includes an urgent warning about the dangers of inaction ("What we should fear is that we fail to decide today"). He/She uses storytelling (examples of village shops and schools) to illustrate the arguments.

2 Speeches Analyzed
Activity Patterns
The speaker has been an active participant in the process of preparing the draft legislation, citing substantive discussions and meetings with dozens of city mayors and rural municipality heads.

2 Speeches Analyzed
Opposition Stance
While direct criticism is absent, the speaker strongly opposes inaction and the deepening of Estonia's unbalanced development, stressing that decisions and changes must not be feared. They warn that today's indecisiveness will push Estonia even further toward imbalance.

2 Speeches Analyzed
Collaboration Style
The speaker emphasized constructive cooperation, thanking the Association of Estonian Cities and Municipalities and the Ministry of Regional Affairs and Agriculture for their substantive contribution. He noted that the discussions were meaningful, and no party attempted to downplay the challenges facing the growth regions.

2 Speeches Analyzed
Regional Focus
The focus is heavily regional, concentrating on areas with shrinking and aging populations and the need to mitigate their loss of tax revenue. The speaker uses examples of village stores and schools to illustrate how life is fading away in rural areas outside of the summer season. He emphasizes that most members of the Riigikogu come from rural areas and return there.

2 Speeches Analyzed
Economic Views
Economic perspectives focus on the regional redistribution of tax revenue to alleviate funding issues in rural areas. He acknowledges the country's financial situation but actively supports measures that help balance Estonia's development, avoiding the continuation of funding solely through the tax revenue of the working-age population.

2 Speeches Analyzed
Social Issues
Among social issues, emphasis is placed on demographic problems, such as an aging population and the migration of working-age people, and the resulting impact on the social life of rural areas. The goal is to ensure that these regions remain vibrant even outside the summer period, thereby preventing school closures.

2 Speeches Analyzed
Legislative Focus
The primary legislative focus is on the Draft Act amending the Income Tax Act (443 SE), the objective of which is to reduce regional inequality through the redistribution of tax revenue. The speaker is a strong supporter of this bill and considers it a significant achievement for the current composition of the Riigikogu. He/She emphasizes the need to continue monitoring the amendments and revisit the system in the future.

2 Speeches Analyzed