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Current Swedish government has made tax cut of more than Skr100 billion since it took office.


   political-economy




Saturday, 23 April 2011
How attractive is Sweden the best place to do business? Some would say it is very attractive others would say – not really - so so! but the Swedish government would say -  hay! look here for the past 5 years we have cut taxes more and more than any other givernement. So we are attractive!

The Swedish government has on the whole, reduced taxes on people and corporation by Skr100 billion since it took office in 2006, according to a compilation by the Ministry Finance reports radio Sweden.

The largest tax cuts have gone to those who work, in various forms of working tax credit. In addition to reduction in working tax credits are also reduction in employer's contribution to schemes such as social insurance which has also seen some reduction in various forms. Then there are also reduction property taxes, something the Social Democrats party wanted to review and increase.

The Social Democrats with high taxes in their DNA, said that they think “the tax cuts are too big,” according to its economic spokesman, Tommy Waidelich.

“I like it. I think that we could improve the quality of welfare. We see gaps in dementia, housing, for example. Had we been able to govern, we would have invested a lot of this on welfare. We surely would also cut taxes, but in a way that did not make the cuts a benefit to those with the highest incomes in the first place, "said Tommy Waidelich, to radio Sweden.

The government has cut various taxes by more than Skr161 billion since 2007 while raising other taxes by Skr62 billion. In total, taxes have therefore been reduced by almost Skr100 billion.
Earned income tax credit and deduction for household services have been reduced to an equivalent of over Skr80 billion in cuts. Capital gained taxes such as  property taxes  and inheritance taxes have been reduced by Skr32 billion and social security contributions in connection with things such as new start companies have been cuts to the tone of Skr23 billion.

The largest tax increases were on properties in different form and the taxes for news businesses. These have been reduced.

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Swedish Finance Minister, Anders Borg is happy with the size of the total tax cuts.
“Yes, Sweden has been a country that had very high taxes and it had resulted in some pretty big damages in terms of what we lost. A lot of work had to be done to redress the shortcomings of our businesses. Now we have started to correct it. This is about that it pays better to work and make it slightly less expensive to hire. Basically, it has had significant positive effects on the Swedish economy,” said Borg to radio Sweden

But the view that a conservative government would reduce the tax burden and at the same time has raised taxes by Skr62 billion is nothing Anders Borg regrets.

“I think it might be good with some tax increases.  Many of these increases are well justified. It's about environmental taxes and taxes on snuff and cigarettes, "said Borg.

The former Conservative leader Bo Lundgren received harsh criticism when he faced the 2002 election  and promised tax cuts of Skr130 billion, the equivalent level for all the tax cuts that the government has done to date.

Anders Borg would not say if the government has reached Lundgren's tax goal now, but predicts further tax cuts in the future.

“It is probably true that tax pressure is still high enough to have serious negative effects on employment, unemployment and the business environment, "he said.  But add that “Yes, there will be tax cuts but not at a fast paced as we have had historically.”

Social Democrat Tommy Waidelich believe that there is no need for any further large tax cuts.
“We do not see any need for big tax increases or large tax cuts, "he said.
By Scancomark.se Team


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