• Sweden edition

Social Democrats in property tax u-turn

Published: 13 Nov 10 17:04 CET | Double click on a word to get a translation
Online: http://www.thelocal.se/30198/20101113/

The Social Democrats should reject the Red-Green coalition agreement to reintroduce property taxes, Thomas Östros, the party's economic policy spokeperson, has argued.

Less than three weeks ago the party presented a joint budget proposal with the Green and Left parties, including a proposal to re-introduce property taxes, abolished by the Alliance government.

"We lose a redistributive policy tool but on the other hand we don't create a great deal of concern among the people," Östros told the Dagens Nyheter daily in stating his opposition to the unpopular tax.

Thomas Östros' shift in position on property tax came as no surprise to political science professor and Social Democrat Ulf Bjereld.

Bjereld explained that the Red-Green cooperation has, at least temporarily, been dissolved, all are free to revisit their positions on past agreements.

A further example of this was a recent opinion article penned by Östros in which he positioned himself more towards the political middle ground than the budget agreement published by the Red-Greens.

"I do not think it is surprising but is a natural consequence and a reinforcement of this position," Bjereld said.

"The Left Party will be the one who find this the greatest betrayal. But they are already smarting after the Afghanistan agreement. So it will probably be more of a sigh of resignation than anger from that direction," Bjereld said, regarding the Left Party's decision to exclude itself from cross-party talks over the Swedish troops stationed in Afghanistan.

Ulla Andersson, economic policy spokesperson for the Left Party, argued that Thomas Östros expressed his personal opinion and not the party.

"I assume that what our parties have agreed in the budget, is what matters," she said.

"The Social Democrats can continue with their discussions and we shall have to see what they come up with. I hope that it will not be a copy of the Alliance's policies," said Ulla Andersson to the TT news agency.

TT/The Local/pvs (news@thelocal.se)

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00:03 November 14, 2010 by Swedesmith
If I'm not mistaken, I thought that when I lived in Sweden (ca. 6 years ago) that I paid property taxes.
04:35 November 14, 2010 by jackx123
you most likely did before the right alliance took power....
13:37 November 14, 2010 by Syftfel
That the social dems are grabbing for straws is evident by this story. They're trying to tell you "look how nice we are". These soc dems, are nothing but unbridled marxists, and the minute you give them a chance, they'll do an immeate U-turn and revert to their old tax-and-spend socialist dogma. Swedes are best not listening to anything these creepy leninists have to say. They'll jump head first, into a Hugo-Mao-Fidel type brave new world. Forget they ever existed!
16:45 November 14, 2010 by McChatter
One nearly has pity on the social-democrats. Lost the direction and now they're going to lose their leader as well. Things can only get better after Moaner's gone!
16:54 November 14, 2010 by bocale1
@Syftfel, your ignorance probably prevent you to know and understand that these "creepy leninists" and "unbridled marxists" have governed Sweden for the major part of its recent history making of our country one of the best where to live in the entire world, with quality of life unmatched by the major part of the other western countries. If you do not know anything about politics and history, shut up and stop posting your fascist nonsenses in this site.
19:49 November 14, 2010 by here for the summer
What do they mean by property taxes ? We pay taxes on our real-estate ( which is commonly referred to as property tax ) in Sweden even as non residents and I am sure that my friends and family who own real-estate do too. I am assuming they are talking something like an asset tax that would tax all assets ? Is this correct ?
20:36 November 14, 2010 by Swedesmith
Okay, that's what I paid, real-estate tax...among many other taxes. Asset tax, what would be taxed under that....physical assets or monetary assets? Talk about taxing up the assets!
22:45 November 14, 2010 by janswed
In Canada the property tax is being the tax paid to the municipality where youre property is located ,that pays for roads transit water ,never heard of an assettax I hope that the taxmyndigheterna har i Vancouver never hear about it neither.
01:07 November 15, 2010 by Bender B Rodriquez
@here for the summer: The state property tax was replaced with a lower municipality tax with a cap of maximum 6000SEK/year for houses and 1200SEK/year for apartments. New houses are exempt for five years. The previous tax was much higher and did not have a cap.
11:22 November 15, 2010 by jackx123
@ bocale1. I think you are the on who needs a primer in Swedish post war economy. There is plenty of fuel to publish but this is the short version.

The social democratic party held government for 44 years (1932-1976), they spent much of the 1950s and 1960s building Folkhemmet (The People's Home), the Swedish welfare state. Sweden's industry had not been damaged by the war and it was in a position to help re-build Northern Europe in the decades following 1945. This led to an economic upswing in the post-war era that made the welfare system feasible. By the 1970s the economies of the rest of Western Europe, particularly that of West Germany were prosperous and growing rapidly, while the Swedish economy stagnated. Many economists blamed its large tax funded public sector.
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