Alliance agrees to scrap payroll tax
The Local · 2 May 2006, 10:33
Published: 02 May 2006 10:33 GMT+02:00
The Moderate Party's proposal to scrap payroll tax on service sector jobs was included in the Alliance's package, which the Moderates, the Liberals, the Centre Party and the Christian Democrats unveiled at a press conference.
The shadow budget included measures previously presented by the Alliance's working groups, but this time the parties also demonstrated how the proposals would be financed.
The cost of scrapping payroll tax is estimated at 3.5 billion kronor.
Lars Leijonborg, leader of the Liberals, said that "everyone can decide for themselves" whether the agreement was significant.
"But if you compare this with the spring budget, in which the government and its supporting parties agreed on spending of 12 billion, we have agreed on 8 billion, and in addition have agreed to accept certain government proposals to the tune of 4 billion. But we have also agreed on an improved balance of 3 billion, so you can say that we have agreed on more than the Left-wing cartel has," Leijonborg continued.
"It is good that this has become a competition about which of the alternatives makes the largest number of firm proposals. And in this it can be observed that we are furlongs ahead of the Left-wing cartel."
The Alliance has put tackling unemployment at the top of its list of priorities, and the parties say that the Social Democrats are disingenuous when they claim that the problem is more or less solved.
Scrapping payroll tax in parts of the service sector will help tackle people who work without paying tax, the Alliance claims. The parties propose abolishing the tax for hotels and restaurants, garages, electronics repair shops, catering firms, cleaning companies catering to private individuals, hairdressers and beauty salons.
The Alliance also proposes to stimulate older people to stay in work for longer and has suggested measures for stimulating small and medium businesses. It also plans to abolish wealth tax.
Photo on previous page: Erik Bratthall