• Sweden edition
 

Stockholmers 'fund the rest of Sweden': report

Published: 21 Oct 2009 16:52 GMT+02:00
Updated: 21 Oct 2009 16:52 GMT+02:00

In 2009, every resident of Stockholm paid 7,180 kronor in hidden transfer payments “rather than the 90 kronor that the system would seem to suggest”, according to a report by Sofia Linder, an analyst with the Stockholm Chamber of Commerce (Stockholms Handelskammare).

The chamber argues it’s time for municipalities minister Mats Odell to change the system, which was last adjusted in 2005 and involves massive transfers of tax revenue between the state and Sweden’s municipalities and county councils.

“The system is completely ludicrous when Stockholmers give money to cities with strong economies like Gothenburg, Malmö, Örebro, and Norrköping,” Chamber of Commerce head Peter Egardt said in a statement.

During a debate arranged to coincide with the release of the report, the system was called Marxist and compared with the reign of the Khmer Rouge in Cambodia.

But there were also defenders of the current system included on the panel, which otherwise consisted of Moderate Party politicians from the well-to-do Stockholm-area municipalities of Täby, Danderyd and Huddinge.

Anders Lago, the Social Democratic mayor of Södertälje, south of Stockholm, thought the report’s conclusions were disgraceful.

“The rich want to have more and couldn’t care less about grandpa and grandma in Flen or the students in Rosengård. My municipality accounts for 15 percent of [Sweden’s] net exports. We contribute to growth in both Danderyd and Täby,” said Lago, according to the TT news agency.

“But people who work here [in Stockholm] don’t live in Södertälje, which also has a large share of immigrants and refugees.”

Södertälje municipality is among the net winners in the current system, as are other cities with healthy economies such as Gothenburg, Malmö, Örebro and Norrköping.

Each city ends up receiving more from the state in the form of equalization grants than it pays in equalization fees.

Over the years, the municipal tax equalization system - which started in the 1960s - has been reviewed several times, and is currently the subject of another government commission investigation into how to improve the system.

Björn Sundström, who heads the current review of the tax equalization system, explained how Malmö’s relatively low tax base has resulted in it becoming a net beneficiary of the system.

“Malmö has unbelievable growth, but the richest residents live in Vellinge or Lomma, which are neighbouring municipalities,” he told the panel.

But Stockholm Chamber of Commerce head Egardt remained highly critical of how the system redistributes Sweden’s local tax revenues.

“The system leads to 278 of Sweden’s [290] municipalities ending up with reduced capacity to carry out measures to boost economic growth. Sweden’s entire growth potential is weakened when the state throws gravel in the economic engine of Stockholm,” he said in a statement.

TT/David Landes (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

17:32 October 21, 2009 by Gwrhyr
Maybe they should have municipalities within each län equalize the municipalities within their own län... that way those rich people who live outside of Malmö but work in it can pay for Malmö and not Stockholm.
18:16 October 21, 2009 by richardbw
Parisians and Londoners make the same argument as Stockholmers. But hey Stockholmers look on the bright side at least you control everything on TV!
20:03 October 21, 2009 by Michael84
Still blame me for all unlawful incidents cause i'm not white, and i'm funding three cities and 5 more villages taxes. Damn !
03:41 October 22, 2009 by Weird_X
'rest of sweden'...in ireland we'd call it 'bogside' :D:D
09:54 October 22, 2009 by EtoileBrilliant
Its what the locals call the "Robin Hood Tax". This is also a gross under-estimate of the real amount.

I have a friend who is high up in Telia. As the state's de facto telecoms provider, they must provide a fixed phone line to every house (I think, to be fair, the definition is not every house but one to within 40m of a municipal road) at a certain price and not COST.

The same applies to other utilities (water and electricity). As the offspring of parents who decided to live out in the Styx I can appreciate why people make these choices. I just wish they were made on an informed basis (i.e. how much other tax payers are subsidizing their lifestyle choices).
13:27 October 22, 2009 by Beynch
Since most of the Swedish ruling elite, sits on its fat, besserwiser, butt in Stockholm, cracking the whip over everyone else, it is only fair that these people should contribute to alleviating the destruction they mete out over its rural minions.
17:07 October 22, 2009 by EtoileBrilliant
@Beynch

I must have missed that one! What "destruction" are you referring to?
20:53 October 22, 2009 by Beynch
@EtoileBrilliant:

Oh no you don't! I'm not falling into your trap. - Perhaps you can tell me?
09:34 October 23, 2009 by EtoileBrilliant
@Beynch

Help me, please! I'm still trying to fathom what the "destruction" is you refer to in your earlier post.
Today's headlines
Race to be scrapped from Swedish legislation
Integration Minister Erik Ullenhag meets children in Husby, Stockholm. Photo: Jonas Ekströmer/TT

Race to be scrapped from Swedish legislation

The Swedish government announced that it plans to remove all mentions of race from Swedish legislation, saying that race is a social construct which should not be encouraged in law. READ  

US aircraft 'violates' Swedish airspace

US aircraft 'violates' Swedish airspace

A mystery airplane that passed over Swedish airspace recently has been revealed as an American aircraft, sources revealed on Thursday. READ  

Elite schools stripped of 'special' privileges

Elite schools stripped of 'special' privileges

Sweden's three elite boarding schools can no longer charge tuition fees, the government announced on Thursday, in a string of changes following a two-year review. READ  

Bildt lays out four steps to Gaza peace
Photos: TT

Bildt lays out four steps to Gaza peace

Swedish Foreign Minister Carl Bildt stated that there are four steps to achieving peace in Gaza, and that it begins with removing the blockade - which has "played into Hamas' hands". READ  

Malmström snags EU commissioner post again

Malmström snags EU commissioner post again

Cecilia Malmström has been nominated to be the European Commissioner for another five years, Sweden's prime minister announced on Thursday. READ  

Stockholm Pride 2014
In Pictures: Stockholm's Historic Pride Party
Conchita Wurst belts out a ballad. Photo: Rebecca Jacobs

In Pictures: Stockholm's Historic Pride Party

With Stockholm's Pride Week in full swing, The Local's Rebecca Jacobs heads on down to the traditional Historic Party to take in the colours, Conchita, and the community. READ  

Two to hospital after Stockholm fire

Two to hospital after Stockholm fire

Two people were taken to hospital in the early hours of Thursday morning after a fire began in their central Stockholm apartment. READ  

Salmonella prompts Coop hamburger recall
Photo: Jim Cole/TT

Salmonella prompts Coop hamburger recall

Swedish supermarket chain Coop has recalled its in-store brand of fresh hamburger meat after a routine check revealed traces of salmonella in the meat. READ  

What's On in Sweden
Photo: Roger Vikström/TT

What's On in Sweden

It's Pride Week in Stockholm. Find out more about the celebrations (including the biggest Pride Parade in Scandinavia) as well as plenty of other activities in Sweden's three biggest cities. READ  

Sweden resumes aid to 'anti-gay Uganda'
Hillevi Engström and protesters against Uganda's anti-gay laws. Photos: Maja Suslin/Ben Curtis/TT

Sweden resumes aid to 'anti-gay Uganda'

Sweden has resumed sending development aid funds to Uganda, after suspending payouts back in March due to "anti-gay legislation". READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
Stockholm Pride bars Sweden Democrats
National
Gender neutral pronoun 'hen' enters dictionary
Society
Top ten cafes in Stockholm
People-watching
Gallery
People-watching - Stockholm Pride
Photo: Henrik Trygg/Imagebank Sweden
Society
Sweden worst in EU at getting foreigners jobs
Blog updates

31 July

Calling a speedo a speedo (Blogweiser) »

"There are a lot of speedos on Europe’s beaches. Some European males are evidently more comfortable sporting small, stretchy suits on public beaches than I would be. I accept it may be nice to have swimwear that’s not long and cumbersome. A speedo is maybe also good for tanning. But strolling around town in a..." READ »

 

27 July

Approaching Stockholm (Around Sweden in a kayak) »

"I woke up in the comfort of my own little cabin on Eva and Rolf’s boat, it was 7:30am and I was feeling a bit groggy after a couple of beers with all the lovely locals the night before. The previous day had really taken its toll on my body and I was very stiff and..." READ »

 
 
 
Lifestyle
Stockholm Pride kicks off
Analysis
The top six ways the US and Sweden differ
National
Swedish youth suicides hit 25-year high
National
Politician reported for selling 'negro ball'
National
Police turn blind eye to Swedish 'slave trade'
Gallery
Stockholm Pride: Allsång på Skansen with Conchita Wurst
Skatteverket
Sponsored Article
Introducing... ID cards and permits in Stockholm
Gallery
People-watching, June 26th - 28th. Get inside Stockholm's hottest nightclubs
Gallery
Top ten Swedish taboos
Society
Seven-year-old Swede cycles to Berlin
Politics
'Gaza conflict needs help, not empty rhetoric'
Society
Swedes voted 'most beautiful' in the Nordics
Business & Money
Sweden demands EU clarity on Bitcoin tax
National
Swedish organic sales enjoy 'amazing' growth
Photo: Johan Nilsson/TT
Society
What's On in Sweden
Gallery
People-watching July 23
National
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
Gallery
People-watching Båstad
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

751
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se