Agenda Profile: Urmas Reinsalu

Draft law on the partial repeal of the Value Added Tax Act Amendment Act (489 SE) – first reading

2024-11-11

15th Riigikogu, 4th session, plenary session

Political Position
The speaker firmly opposes the government's tax hike policy, particularly the amendments to the Land Tax Act, which project a sharply increasing tax burden for homeowners and entrepreneurs. The political framework is strongly value-based, emphasizing the state's breaking of promises ("betrayal of trust") and the protection of legitimate expectation. Isamaa's goal is the repeal of the land tax increase law to prevent the projected 38% growth in revenue collection in 2025.

17 Speeches Analyzed
Topic Expertise
The speaker demonstrates comprehensive knowledge of the technical details of land taxation, including the abolition of the area-based tax exemption and the phasing in of the tax increase (50% in 2025, 100% in 2026). He/She makes extensive use of specific statistical data (e.g., €22 million in additional revenue, a potential tax of €4,000 in Nõmme) and consistently refers to the expertise of stakeholders (the Central Union of Property Owners, the Chamber of Agriculture) and the Ministry of Finance.

17 Speeches Analyzed
Rhetorical Style
The speaker’s style is combative, sharply critical, and forceful, using highly charged emotional language, including words like "madness," "sadism," and "hypocrisy cubed." He/She combines logical arguments and statistics with emotional appeals aimed at protecting homeowners and the elderly, accusing the government of implementing a "manor lord philosophy." The rhetoric is designed to highlight the deficit of trust and the lack of political legitimacy.

17 Speeches Analyzed
Activity Patterns
The speaker's pattern of activity is centered on parliamentary work, submitting bills (the land tax, the car tax) and participating in intense debates. He refers to previous parliamentary finance committee hearings and stresses the necessity of repealing the law before the end of the current calendar year.

17 Speeches Analyzed
Opposition Stance
The main opponents are the parties of the governing coalition (Reform Party, Social Democrats, Estonia 200). Criticism is directed both at the political substance (tax hikes) and at procedure and ethics (breaking promises, ignoring interest groups, lack of political mandate). The attacks are intense, accusing the government of worsening the economy and forcing people into difficult choices.

17 Speeches Analyzed
Collaboration Style
The speaker, acting on behalf of the Isamaa faction, calls upon all political forces to support the annulment of the tax increase. He emphasizes cooperation and consultation with interest groups (farmers, entrepreneurs, homeowners), whose views the government allegedly disregarded. There is no sign of a willingness to compromise regarding the tax hike; instead, its complete repeal is demanded.

17 Speeches Analyzed
Regional Focus
Although the focus remains on national tax policy, regional examples are used to illustrate the impact of the tax increase, specifically mentioning Nõmme, Paide (which faces a revenue shortfall of 500,000 euros), and Võru. A separate emphasis is placed on the growing burden on rural areas (farmers, the forestry industry) and homeowners.

17 Speeches Analyzed
Economic Views
The speaker is strongly against tax hikes, arguing that they worsen the economic environment, reduce purchasing power, and increase uncertainty. He emphasizes that Estonia's main problem is the volume of the economy (nominal GDP is smaller than projected), not a low tax rate. He defends positions against property taxation and supports the interests of the business sector.

17 Speeches Analyzed
Social Issues
The most crucial social issue is the financial well-being of homeowners and the elderly, who face the threat of skyrocketing housing costs and difficult, forced choices regarding the preservation of their assets. The speaker criticizes policies that encourage the redistribution of property and defends Estonia's traditional "homeowner society."

17 Speeches Analyzed
Legislative Focus
The main legislative priority is the initiation and passage of the draft Act (489 SE) on the Partial Repeal of the Act Amending the Land Tax Act. Furthermore, attention is focused on abolishing the motor vehicle tax and adjusting the equalization fund formula to alleviate the financing issues faced by local authorities.

17 Speeches Analyzed