• Sweden's news in English

Reinfeldt open to further tax cuts

TT/The Local/dl · 10 Jan 2011, 08:39

Published: 10 Jan 2011 08:39 GMT+01:00

Facebook Twitter Google+ reddit

Reinfeldt told Sveriges Television (SVT) on Sunday that he’s open to moving ahead with the fifth stage in the centre-right government’s in-work tax credit programme (jobbskatteavdraget).

According to Reinfeldt, the tax reductions could come as soon as January 1st, 2012 as long as the four parties of the centre-right Alliance government can come to an agreement on the issue.

“But we believe on the best way to stimulated part time workers and low-wage earners to want to work more. Everyday working people will notice it in their wallets,” he told SVT.

The plan would cut taxes for wage earners by between 190 and 375 kronor ($27 to $54) per month, according to calculations presented during the 2010 election campaign.

Reinfeldt hopes to provide additional tax relief in the coming years to other segments of the population.

Story continues below…

“It ought to be matched with further relief for pensioners and tax reductions that make life easier for companies. In this case, we’ve proposed cutting the value added tax for restaurant services in half,” he said.

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

Facebook Twitter Google+ reddit

Your comments about this article

09:38 January 10, 2011 by Great Scott
Instead of cutting taxes, maybe this fool would do better in investing in jobs for the highest under 25 unemployed group in Europe.
09:47 January 10, 2011 by the fonz
This makes complete sense. Lower tax policies encourage growth which increases the overall tax take and everyone in society benefits. High tax policies stunt growth and big players (like IKEA) relocate abroad which costs billions.

Well done (again) the Swedish Government.
09:53 January 10, 2011 by Great Scott
Instead of cutting taxes, maybe this fool would do better in investing in jobs for the highest under 25 unemployed group in Europe.
09:59 January 10, 2011 by Brtahan
Well said Great Scott!!! or invest in the health system , a sick person has to wait months and years before getting an appointment! Its Amercia Soon,
11:13 January 10, 2011 by RobinHood
A well managed economy raises, or decreases, taxes as economic circumstances demand.

Sweden's economy has been extremely well managed these past five years. Back to back election winner, Mr Reinfeldt has the mandate to do whatever he wants, without reference to yesterday's sad and rejected dogma.
12:10 January 10, 2011 by know
It´s the revolution beginning !
14:04 January 10, 2011 by Syftfel
Contrary to the tax hiking, income restributing terrorism of the social dems, here's a leader with vision of what's best for Sweden. With lower taxes also comes less government spending. Let's hope that those spending cuts come in social welfare policies, assorted wasteful government programs and the unions' cadillac retirement and health benefits schemes. About then only area where increased governement spending is warranted is national defense and law enforcement.
16:24 January 10, 2011 by Borilla

By all means. Lets do everything we can to deprive the ordinary citizen of healthcare, education and a secure old age. Lower the workers' wages and extend their hours. Since we won't be sending the children of the lower classes to school, they can as well go to work. That way we can pay the CEO's multiple hundreds of times the average worker's pay. Pretty soon Sweden can be just like the US and the UK, paying useless drones for destroying whole industries and putting the elderly back to work. You have a masterful plan.
16:55 January 10, 2011 by miss79
@borilla yep true..soon sweden will be like UK and US..dont forget probarly another suicide bombing or terrorist attack again like this 2 countries been through
17:36 January 10, 2011 by Great Scott
Good article Borilla, Syftfel will eat his words when he retires when there's no money and no one to care for him, but hey who care about him anyway.

When conservatives lower taxes it always at the cost of health and education.
18:00 January 10, 2011 by Mib
Tax rates have been lowered for the last few years and it has benefited everyone in employment and encouraged people to choose work over benefits when they have the opportunity of work. However, it would be better to focus now on reducing the employer's tax for each employee to encourage them to employ more people, which they plan to do in the future.

Thatcher proved very clearly that reducing HIGH taxes to moderate taxes increases tax revenue. And what does tax revenue do...aha...it pays for the medical, social, eduation and police services etc. What I have issue with is that the taxes that are spent on these services are NOT done so effectively and efficiently and are used to reorganise services everytime a new Government comes in.

Extreme right or left wing policies do not work! It has to a mixture of philisophies used intelligently and without political idealology or personal ambition other than to imrpove the country for everyone. But, the fundamental approach is to encourage more job growth to help generate the revenues needed to fund other services in combination with moms etc.
20:13 January 10, 2011 by americanska
Liberals need to look at a little history before they speak.

You might want to look at what the US was like when the top tax bracket was 90%...no one had any money. Then JFK cut it down to 70 and Regan cut it down to 40%......that is when the US became a true economic powerhouse.
21:22 January 10, 2011 by Arturio
A good rule is that: i lower your taxes id you employ more peoples.

So you still have tax revenue and less peoples on the street.
00:32 January 11, 2011 by Great Scott

"Thatcher proved very clearly that reducing HIGH taxes to moderate taxes increases tax revenue. And what does tax revenue do...aha...it pays for the medical, social, education and police services etc."

If this is the case what happened to all this, people in the UK saw nothing. Today people of the UK are sick and tired of fat cats and the pigs that bled the country dry at most people's expense, have you not heard of rip off Britain.

There was NEVER an increase in tax revenue, it was health, social services and education that paid for tax cuts. Remember who took away free milk at schools, yes thatcher, remember who caused the poll tax riots, yes thatcher, remember who made thousands unemployed yes thatcher, remember who made people homeless with the highest house repositions UK history yes thatcher, remember who started selling off UK utilities that everyone now complains about, yes thatcher, shall I carry on. thatcher ruined the UK in such a way that the UK has never been able to recover.

thatcher caused nothing but misery for most people.

One other thing is when taxes are lowered retail prices are not reduced in line, no that little bit is creamed of by the fat cats (conservatives).

Before thatcher carved up the UK, it had the best health system in the world (the very one that Sweden modelled its own health system on), one of the best education systems in the world and one of the best work forces in the world. The fool that is running Sweden now is following the same footsteps that thatcher took, she fooled us all, and he will fool Sweden. Sweden will find out the same in years to come.

Why is it that Sweden tries not to talk about it's under 25's unemployment (An embarrassing 25%, the highest in Europe), surely it's better to deal with that first, then you can have more tax revenue, that will create more jobs etc etc. Making a country better off is to make more jobs, more opportunities. Cutting taxes is a short sighted view and never works without a cost.
02:43 January 11, 2011 by Alohart

The highest marginal U.S. income tax rates used to occur when the U.S. actually paid for its wars rather than mortgaging them for future generations to pay. During the last period of high marginal tax rates (1950's - early 1960's), U.S. families were quite prosperous. I knew few families in which both parents had to work in the 1950's unlike now. Homeless people weren't living everywhere. Income inequality wasn't nearly as severe as it is now. Most of us had everything that we needed and lived arguably a better family life than now. The U.S. was a real economic powerhouse then as the biggest creditor nation in the world. How you can state that the U.S. with its much lower marginal tax rates is now an economic powerhouse is incredulous. The U.S. is now the biggest debtor nation in the world and continues shipping its wealth overseas because of huge trade and budget deficits.

You conservatives need to learn actual history rather than a version that satisfies your rigid ideological beliefs.
03:14 January 11, 2011 by 2394040
Like I've said before, those who won't learn from history are destined to repeat it. The USA has been in a state of decline for many years now, and undermining its economy by such things as Sweden is now determined to do; chief of which was cutting taxes and privatizing everything. All this will do is bring Sweden to its knees. More of the wealth will go into the coffers of the rich as the rest of the populace slides into poverty.

Unfortunately, this just confirms what I have believed for a long time now. Truth is what one believes it to be, even if it is based on a lie. I cannot believe the number of people who are falling for this malarkey.

@americanska, it's quite obvious that Swedes are going to buy into this. They have chosen to learn their lesson the hard way. So be it. Even as I write this, there are politicians in Washington who are going to try to destroy the Social Security system.
09:39 January 11, 2011 by Nemesis
We have seen this before in the UK and Ireland.

In the UK under Thatcher entire communities and anything resembling social cohesion was destroyed.

The bankers were favoured and all the money was diverted to the fat pigs.

Now in the UK, the poorest, weakest and most infirm have to pay for the mistakes of the rich fat pigs.

In Ireland They also diverted all the money to the fat pigs. That is why Ireland now has such massive debt and the poorest have to pay for the mistake of the rich fat pigs.
10:51 January 11, 2011 by the fonz
@ Nemesis

Fair comment to a degree but let's not forget the state of the UK has been caused by 13 years of Labour rule.

The country was in good economical shape before the Blair/Brown fiasco. It's easy to blame Thatcher for all kinds of things but we shouldn't forget she inherited a bankrupt country from Labour and she had to take tough measures to put things right. Sound familiar?

The rich fat pigs have flourished under Labour - funny how the spin of Labour has tried to divert any blame from their poor management of the banking industry and the economy.
12:27 January 11, 2011 by Mib
@Great Scott

oooohhh... such short memories! Before Thatcher came along...we had 3 day weeks, power cuts...rubbish left on streets enmass. Union members having tea at downing street....to dictate to the Government. FACT: Thatcher did not vote to take away free milk...she in fact opposed the plan.

The Education and NHS were better, but what has the New Labour done to rectify that? Thrown more money at the system, which goes into IT and business consultant pockets and CEOs with no humanity. How many civil servants are on a higher salary than the Prime Minister? That would never have happened during Thacher's reign!

Thatcher was by no means perfect, but she did what she thought was right after another Labour balls up! The unions were too strong and the olde industries were in efficient and were not in an economic position to continue as they were. But, hey the union leaders did alright didn't they. Scargill is living on a very nice pension, big house and other perks etc....all paid for by the striking miners!! These industries would have disappeared very quickly regardless of Thatcher....she just expedited the solution. Today's global economy and environmental rules would have done the job anyway!

Poll tax was a very stupid idea and came towards the end of her time as just like Bliar ....power corrupts after a while.

There was an increase in TAX revenues!! Yes, there were other cuts, but it was out of necessity in some cases and too much in others. All medical systems in the world are treating more people due to longer living, new medcines/treatments and greater expectations from the public. The NHS is wasting billions ie. buying large bloacks of soap which have to thrown away after a short time. Why don't they buy smaller sizes? Paying for very large IT projects that either go massively over budgt or fail. The list could go on....but all people like you do is talk in general terms without acknowledging the problems. You live in a romantic view world where everything was better "in my day". Rose tinted view comes to mind. The WORLD has changed and until you realise that whatever the colour of Government is in power, they all drink/eat together and do deals for their friends in the banks and business. That is the REAL crime and we ALLOW it to continue......cause most of us are too comfortable in our lives to complain!!

Even in America where it is a bit more democratic, the representatives in Government are funded by donations...normally from large self-interested groups to influence regulations and laws. And as Wikileaks has proven very clearly, most people in Government worldwide are a bunch of corrupt, arrogant, self indulgent group of people and as individuals we live in an illusion of democracy. Look what happened in America...Palin and others turned very nasty towards Assange and others and one politician even stated that he should be assasinated. That is the reality!
17:23 January 11, 2011 by Great Scott

Well I am having to read your comment twice to decide if you are swinging to the right or the left.

So let's take it a step at a time, the 3 day week as you say, at that time the prime minister was Edward Heath (conservative). Power cuts, that's what lead to the 3 day week, rubbish on the streets that was because of the 3 day week.

Good to see you agree "Education and NHS were better", however due to tax cuts made under the tory government; extra money was needed to keep the NHS on its feet.

"How many civil servants are on a higher salary than the Prime Minister?" If you are asking me I don't know, do you.

"olde industries were in efficient" This was because the fat cats that run them never reinvested and bled them dry.

"Scargill is living on a very nice pension", not as good as the ones that thatcher (all paid for by Her Majesty's subjects) and what's his name the bloke in grey got (what was his job).

thatcher went out of her way to take on the miners at what cost, thousands of jobs, millions of pounds and fatalities. If a normal person had done any one of those things, they would have got life in prison.

"Poll tax was a very stupid idea", you're getting there.

"There was an increase in TAX revenues!!" No there was not.

"Yes, there were other cuts", we are beginning to agree.

If a block of soap is my biggest worry, then I have nothing to worry about. By the way the soap is recycled.

IT, all companies face problems, this is nothing out of the ordinary, and bearing in mind the NHS IT system is so big and complex.

"You live in a romantic view world" I do love that statement.

"The WORLD has changed and until you realise that whatever the colour of Government is in power, they all drink/eat together and do deals for their friends in the banks and business. That is the REAL crime and we ALLOW it to continue......cause most of us are too comfortable in our lives to complain!!" Now you have swung from right to the left.

"most people in Government worldwide are a bunch of corrupt, arrogant, self indulgent group of people and as individuals we live in an illusion of democracy." Hang on, you where praising thatcher earlier on.

Remember torys don't like to spend money, they just like to hoard it.
17:55 January 11, 2011 by americanska
the UK is a separate problem guys...no one believes in tax cuts over there. the conservatives in the US used to be the same though, they didn't understand that cutting taxes and growing the economy would increase tax revenue. it took JFK...a dem...to help them realise. Regan took it and ran with it....which is why Regan is the father of modern conservatives in the US.

Too bad for the UK...the NHS is a blackhole....so no matter how much spending you cut in other areas you cannot ever make up for the increasing healthcare costs that the goverment must pay for. Sweden will have the same problem. The welfare state is a failure.
21:12 January 12, 2011 by samwise
can't people pay more taxes if they prefer? I mean the ones who love to pay more taxes should be able to do that voluntarily.
14:11 January 15, 2011 by Uggla
He will just close more hospitals, childrens clinics, and schools, leave less jobs.

So that no money is lost to his and hes pals pockets.

And only the grumpy bitter racist nurses and doctors that work for peanuts will be left to care for you.
11:18 January 16, 2011 by Great Scott
@ Uggla

You have visions of the future, and others need to take this seriously. If right wing parties such as conservatives are allowed to continue. These people have a talent of scamming others into paying for their life styles. thatcher proved that.
Today's headlines
Malmö's 19th Swedish title sets Champions hopes alight
Malmö fans celebrating after the match. Photo: Björn Lindgren/TT

Malmö FF have their eyes set on the Champions League after winning the Swedish league for the 19th year.

What's on in Sweden
Five great autumn events in Sweden this week
Jazz in northern Sweden. Photo: Umeå Jazz Festival

Food, music, movies and more food. What better way of helping yourself forget that the days are getting shorter and colder?

Here's how slow Sweden's high-speed trains are getting
A Swedish SJX2000 high speed train. Photo: Tomas Oneborg/SvD/TT

The high-speed rail journey between the three biggest Swedish cities is about to get longer.

The Local List
12 Swedish words with just awesome literal translations
A filthy-minded lobster, i.e. a snuskhummer. Photo: Gorm Kallestad/NTB scanpix/TT

One of our favourite things about the Swedish language is its wonderful compound words, which range from being utterly bizarre to making perfect sense.

US election
Donald Trump won't get new Ericsson head's vote
Trump pictured at a campaign rally in Florida. Photo: Evan Vucci/AP

The new Swedish-American boss of telecoms giant Ericsson has revealed he will not vote for the Republican nominee in the forthcoming US presidential election.

Swedes named fourth most gender equal in the world
A file photo of men and women pushing prams in Stockholm. Photo: Claudio Bresciani/TT

Sweden has closed 81 percent of its overall gender gap according to the World Economic Forum.

Sweden: Russian warships in the Baltic 'worrying'
Swedish Defence Minister Peter Hultqvist. Photo: Vilhelm Stokstad/TT

Two Russian warships equipped with long-range missiles have entered the Baltic Sea after passing Denmark.

Why businesses are worried about Sweden's drone ban
A drone filming in Stockholm. Photo: Pontus Lundahl/TT

The Local investigates what Sweden's new drone ban could mean for businesses in the country.

This is the new top boss of Swedish Ericsson
Börje Ekholm. Photo: Magnus Hjalmarson Neideman/SvD/TT

Telecoms giant Ericsson has appointed a new CEO after a turbulent year for the company.

These are Sweden's best universities: ranking
A new university ranking has been released. Photo: Cecilia Larsson Lantz/Imagebank.sweden.se

At least according to this global ranking, which picks 12 Swedish universities among the top-1000.

Sponsored Article
Stockholm: creating solutions to global challenges
Sweden cuts 2016 refugee forecast
Sponsored Article
Last chance to vote absentee in the US elections
Is Game of Thrones coming to Sweden?
Property of the week: Kungsholmen, Stockholm
Blog updates

6 October

10 useful hjälpverb (The Swedish Teacher) »

"Hej! I think the so-called “hjalpverb” (auxiliary verbs in English) are a good way to get…" READ »


8 July

Editor’s blog, July 8th (The Local Sweden) »

"Hej readers, It has, as always, been a bizarre, serious and hilarious week in Sweden. You…" READ »

Sponsored Article
This is Malmö: Football capital of Sweden
Will Swedes soon be looking for fairtrade porn?
Sponsored Article
Where is the Swedish music industry heading?
The Local Voices
'I simply don’t believe in nationality'
Why we're convinced Game of Thrones is based on Sweden
People-watching: October 21st-23rd
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Fury at plans that 'threaten the IB's survival' in Sweden
Sponsored Article
Swedish for programmers: 'It changed my life'
Analysis & Opinion
Are we just going to let half the country die?
Angry elk chases Swede up a lamp post
Sponsored Article
Top 7 tips to help you learn Swedish
The Local Voices
'Alienation in Sweden feels better: I find myself a stranger among scores of aliens'
Sponsored Article
‘Extremism can't be defeated on the battlefield alone’
People-watching: October 20th
The Local Voices
A layover at Qatar airport brought this Swedish-Kenyan couple together - now they're heading for marriage
Sponsored Article
Stockholm: creating solutions to global challenges
Swede punches clown that scared his grandmother
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Fans throw flares and enter pitch in Swedish football riot
Sponsored Article
Where is the Swedish music industry heading?
Could Swedish blood test solve 'Making a Murderer'?
Sponsored Article
One expat's strategy for making friends in Stockholm
Swedish school to build gender neutral changing room
Sponsored Article
Nordic fashion in focus at Stockholm University
People-watching: October 14th-16th
Man in Sweden assaulted by clowns with broken bottle
Nobel Prize 2016: Literature
Watch the man who discovered Bob Dylan react to his Nobel Prize win
Record numbers emigrating from Sweden
People-watching: October 12th
The Local Voices
'Swedish startups should embrace newcomers' talents - there's nothing to fear'
How far right are the Sweden Democrats?
Property of the week: Triangeln, Malmö
The Local Voices
Syria's White Helmets: The Nobel Peace Prize would have meant a lot, but pulling a child from rubble is the greatest reward
jobs available