Reinfeldt open to further tax cuts

Reinfeldt open to further tax cuts
Swedish Prime Minister Fredrik Reinfeldt has indicated that his government is ready to push ahead with further tax cuts assuming public finances continue to improve.

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.

“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.

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