Reykjavík Grapevine - 14.08.2015, Blaðsíða 8

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I C E L A N D 4 D U M M I E S
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T EMPL AR A SUND 3 , 101 RE Y K JAV ÍK , T EL : 5711822, W W W.BERGSSON. IS
Continued
There are many reasons for rising inequality in the world, but in Iceland the main cause is simple. The current right-wing
government has lowered taxes affect-
ing the rich. To illustrate this, let us pick
an example at random: the wealthy Mr.
Sigmundur Davíð Gunnlaugsson. His
tax payments went down from roughly
122,000 Euros last year to 54,000 Euros
this year, a reduction of about 55 percent.
Don't try to fool me, that's not a
random example, that's the Prime
Minister of Iceland.
The case of the Prime Minister is not
brought up to suggest that he is using his
power to enrich himself. The 68,000 Eu-
ros or so have no affect on his finances.
Business paper Viðskiptablaðið esti-
mated in 2013 that he and his wife were
worth about 7.5 million Euros. Now, that
is not the kind of money where you can
buy an island and build a skull-shaped
secret lair, but it is enough to get you in
the top 0.05% of the richest people in
the world.
Bah, what good is money if I can't
hold the world hostage with my
giant skull laser?
No political party has ever had a major-
ity of seats in the Icelandic parliament.
Therefore coalition governments are
the norm. In theory, having two or more
political parties in power should cover
possible blind spots and limit excesses,
but sometimes politicians of differ-
ent striphes share blind spots. The two
parties currently in power—the Prime
Minister's Progressive Party, and the In-
dependence Party—are both headed by
men from wealthy families. Government
rhetoric and policies make it clear that
the two parties have little or no idea what
life is like when you do not benefit hand-
somely from the abolition of a wealth tax.
But are they wealthy enough to
understand the struggles of those
making down payments on a giant
skull laser?
Most of the Prime Minister's lower tax
payment can be explained by the aboli-
tion of the wealth tax, though his income
tax payment also went down by roughly
35 percent. As pointed out by journal-
ist Gunnar Gunnarsson, who broke the
story for the news site Austurfrétt, this
is the result of changes made to the Ice-
landic tax code last year. Jóhann Páll
Jóhannsson analysed the new tax sys-
tem in the newspaper Stundin, writing
that the "changes made by the current
government to the tax code have been
most beneficial for the wealthiest in Ice-
landic society."
Wealth does not bring happiness,
as the ancient wise men say. Hap-
piness is a warm giant skull laser.
These changes are in opposition to what
the government formed by the Social
Democratic Alliance and the Left-Greens
did after coming into power following
the 2008 financial crash. That govern-
ment increased taxes on large businesses
and the wealthy and decreased the tax
burden on those with low-to-middle
income. So things have taken a drastic
swing in the opposite direction.
Like when I push my kid on
a swing and don't pay attention,
it hits me right in the face.
Speaking to Stundin, Columbia Univer-
sity economist Jón Steinson says that
before the crash "the tax code Iceland-
ers lived with was the most right-wing
of wealthy countries in OECD." Stundin
points out that in 2007, if you compared
the wealthiest one percent of the popula-
tion in the United States and Iceland, the
former paid 30 percent of their income in
taxes, while the latter paid 13 percent.
And now the Icelandic govern-
ment is trying to give rich Ice-
landers more money again. That
worked well last time.
It would perhaps be a little harsh to
suggest that the richest one percent of
Icelanders are idiots who should not be
trusted with anyone's money, including
their own. However, the Icelandic pub-
lic is none too fond of the idea that rich
people should pay less in taxes, especially
as basic services, like healthcare, are un-
derfunded. According to opinion polls,
the Independence Party's support is back
down to the level it was immediately af-
ter the financial crash, for which it was
widely blamed. The Progressive Party
has lost half of the support it had in the
last election.
Have any populist parties risen up,
as has happened in Europe?
The beneficiary of public discontent, at
least in terms of polling, is the Pirate Par-
ty. Since spring, it has consistently polled
as the most supported party in Iceland.
The two left-wing parties, as well as the
centrist party Bright Future, have also
declined in polls. The parties in govern-
ment have not reacted so far, possibly
thinking that the Pirate Party will lose
followers as elections draw nearer. But
if it does not happen, or another opposi-
tion party draws the populist following,
then they might have to pool their extra
money together for a giant skull laser.
8 The Reykjavík GrapevineIssue 12 — 2015
So What's This I Keep Hearing About
Rising Inequality in Iceland?
Words by Kári Tulinius @Kattullus
Illustration by Lóa Hjálmstýsdóttir
I C E L A N D 4 D U M M I E S
Iceland | Inequality
Speaking of adorable baby an-
imals, the town of Reykjanesbær
has finally found a solution for
their out-of-control vegetation
by setting goats loose on patches
of thick and fast-growing plant
life that has been the bane of
lawn mowers and weeders. The
goats were so efficient that city
officials have confirmed they
will be rehired next summer.
In other news: an archae-
ologist reportedly made “the
find of the century” in a newly
discovered Icelandic cave. In the
recently discovered and appro-
priately named Leynir (“Con-
ceals”) cave, Adolf Friðriksson,
the director of the Institute of
Archaeology, has found signs
that a person cooked horse meat
at some point in the 12th century,
despite there being no record of
any people living in the area at
the time.
So, there’s good news and
there’s bad news. Good news:
Following a combination of
strong public support and gov-
ernment willingness, it looks like
we could soon be saying “bless
bless” to Iceland’s naming laws.
In a recent radio interview, Min-
ister of the Interior Ólöf Nordal
told reporters that she believes
the laws need to be abolished.
To this end, her ministry is
currently drafting a bill to do
just that.
Now for the bad news:
Björk has cancelled a series
of shows, including Iceland
Airwaves. The reason given for
the cancellation was a schedul-
ing conflict and unfortunately
the cancellations aren’t without
precedent: several Björk shows
were also cancelled in 2008, 2011
and 2012, due to medical prob-
lems and staging issues.