Government promises further tax cuts

The government has promised another round of tax reductions and has agreed to implement a third stage in lowering the income tax burden.

The plans call for achieving the income tax reduction in part by lowering the average tax, and in part by further reducing the marginal tax charged to low- and middle-wage earners when their salaries increase.

The four party leaders of the governing Alliance parties, Prime Minister Fredrik Reinfeldt, Maud Olofsson, Jan Björklund, and Göran Hägglund, write in a debate article in Thursday’s edition of the Dagens Nyheter newspaper that even the level of state income tax will also be limited in order to stimulate full time work and the make education pay off.

To what extent and in which speed the reductions will take place will depend on the development of public finances as well as adjustments required by other reforms.

The outline will be presented in the spring budget next week.