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by KSteffensen 1927 days ago
We have the same problem in Denmark.

It doesn't have to be cancelled suddenly, it could be removed over a period of 25 years or even more. Similar to what happens with public pensions.

3 comments

Yeah, I think that's what's going on over here. (Likewise for the retirement age.)
I'm intrigued, what are you referencing in regards to public pensions in Denmark?
Denmark is in the process of raising the retirement age. This is done gradually to allow people to properly plan for it. This means that the retirement age is based on year of birth. For people born before 1. january 1954 the age is 65.5. For people born in 1996 or later the retirement age is 74. There is a scale between these two points, I was born in the early 80es and my retirement age is 72.

The argument behind this is that the current level of income/taxation can not support people on pension for more than ~12 years on average and as the life expectancy rises the retirement age must rise with it.

There is a fairly big debate happening on 'graduated pensions'. Should a bricklayer who has carried heavy loads all his life be forced to work to the same age as an academic who has spent a large amount of time behind a desk in an office?

Does it matter now that we have negative interest rates?
No, and that means this is the best time to get this done. The least amount of people will be affected.

The interest rate will go back up at some point and we would have a fairer house market without this tax deduction. It's basically a tax break for people with enough resources to buy their house. And it drives up the housing prices making it harder for first-time buyers.

It means it’s the perfect time to phase out the deductions, because they are very low at the moment.