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Sweden moots further tax cuts for wage earners

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Sweden moots further tax cuts for wage earners
09:56 CEST+02:00
The four alliance party leaders announced in an article Tuesday that they are ready to push ahead with further tax cuts provided public finances continue to grow.

Fredrik Reinfeldt, Maud Olofsson, Jan Björklund and Göran Hägglund presented the cuts in an opinion article in the Dagens Nyheter daily, ahead of the spring budget proposition, which the government will present in the Riksdag on Wednesday.

“Growth is large and public finances are healthy. This opens up for reforms,” they wrote in DN.

This is the fifth stage in the centre-right government's in-work tax credit programme (jobbskatteavdraget).

The plan is to cut taxes for wage earners by between 190 and 375 kronor ($27 to $54) per month, according to figures presented in the 2010 election campaign. There will also be a cut in VAT (moms) for the restaurant and catering industries.

“We see these as two central reforms to lower the threshold into the labour market, to increase jobs and to further more and growing companies. To make possible more work, not in the least for young people,” they wrote.

In preparation for the autumn budget proposition the Alliance party leaders also presented five focal points that they are looking at; continuing work for full employment, a robust financial system, a first class educational system, a high quality welfare set up, and durable growth in all parts of Sweden.

The tax cuts, which also include a reduction for pensioners, will be implemented in the autumn budget, and will come into effect at beginning of 2012.

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