Sweden unveils plan to slash corporate tax rates
Published: 13 Sep 12 11:59 CET | Print version
Online: http://www.thelocal.se/43202/20120913/
Sweden aims to cut corporate tax rates by 15 percent in 2013 in a move estimated to cost state coffers about 16 billion kronor ($2.4 billion).
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In a proposal, the government unveiled plans to lower corporate tax rates to 22 percent from the current level of 26.3 percent.
"We want to provide a stimulus for both small and large businesses," enterprise minister Annie Lööf told reporters, according the Expressen newspaper.
The new lower rate, to be included in the government's forthcoming autumn budget proposal and go in effect on January 1st, would bring Sweden's corporate tax rates to a level below the EU average of 23.5 percent.
Around 8.8 billion kronor of the expected cost of the measure would be funded through tighter rules limiting interest payment deductions companies commonly claim on internal loans.
According to the government, the motivation for the cut is that Sweden's current corporate tax rate, which is above both the EU and OECD average, puts the country at a competitive disadvantage.
"The significant reduction of the corporate tax is expected to strengthen the investment climate and growth in Sweden," the government said in a statement.
"Because Sweden isn't situated in the centre of Europe, it's appropriate for our corporate taxes to be competitive."
The government also proposed a deduction for investors that would increase access to capital for new and growing businesses.
The cost of the new deduction is expected to run 800 million kronor and be implemented on September 1st, 2013 at the earliest, as the proposal must first be approved by the European Commission.
News of the pending corporate tax cut was welcomed by Swedish business groups.
"In the difficult financial climate business owners face today, this is a real injection for all business owners," Elisabeth Thand Ringqvist, head of the Swedish Federation of Business Owners (Företagarna), said in a statement.
"For those that have a hard time finding financing, the investors' deduction offers an opportunity to find new capital and the lowering of corporate taxes makes it easier to reinvest profits in the country."
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And who is going to pay the rest?
I expect the good news is we are all going to see some good price cuts! Ha,ha.
Hopefully it does work like this at least. I'm not sure exactly however how much red tape there is with businesses here as I haven't looked in to that but hopefully this will give some kind of push.
Claiming that Obama's stimulus saved the economy is like a person losing his job but 'saving' his lifestyle through credit card spending. It looks brilliant until the bill comes.
The fact is that there are very few instances where politicians spend money as productively as the people who made the money in the first place. First of all, they simply lack the ability, though their arrogance often prevents them from seeing this. Second, businesspeople and normal citizens are more likely to make decisions based on financial concerns. Politicians, however, also have to deal with political concerns which results in more inefficient spending.
"socialist/Marxist lead by the Democrat party", isn't that the opposite to Fascist/Nazism lead by the Republican party. Oh yes, I seem to remember it was under the Republicans watch when the US banks sunk the world.
Their election is out of the way in November so from that point I can see a rise in the US economy of 2.5 % and over 3% by 2015.
Ben Bernanke just did the right thing during the week and with AIG share sales(as 1 example of His Investment) generating more return for the US taxpayer I can see a greater return in the future
I sincerely hope that the EU Leaders can Learn from Ben B´s Investment Strategy!
Huh?
The Democrats held the Senate and the House from 2006-2010. Then the they held a super-majority in both houses during Obama's first two years (2008-2010).
Facts are pesky things, aren't they?
Time to put the big boy pants on and stop cry-babying about Bush.
2001: Tropical Storm Allison
9/11 Terror Attacks
Anthrax Attacks
2003: Space Shuttle Columbia Disaster
American Airlines Flight 587 Crash
2004: Hurricane Charley**
Hurricane Francis**
Hurricane Ivan**
2005: Hurricane Katrina**
Hurricane Rita**
Hurricane Wilma**
Evansville Tornado
2007: Hurricane Dean
California Wildfires
2008: Hurricane Ike**
** 7 of 10 of the most expensive hurricanes in US history.
Katrina was estimated to cost the same as 4 wars according to NBC, and we had 2 wars during those years.
So...I don't think our debt was necessarily all due to GW. Imagine if Obama had to deal with all of that. He's already added the same as Bush to our deficit but in half the years.
Bush went to those disaster areas afterward, as a president should. Obama squeezed a day in after hurricane Isaac, then continued campaigning.
I'd rather have another Bush.
I also think the US needs to cut corporate taxes to compete, the way Sweden is. Everyone seems to get that BUT Obama.