Sweden’s Social Democrats love high taxes want to review Property taxes


Tuesday, 19 April 2011
The Swedish Social democrats just cannot think of staying away from people taxes. After finding it hard to propose very higher taxes they have in their DNA, they have now decided to start talking on proposing astronomically higher property taxes.

Property tax is one of the best treasures. The Social Democrats should therefore introduce a new property tax if they win the next election according to Social Democrats leader Hakan Juholt’s new economic policy adviser.

She believes that the Finance Minister Anders Borg really like the property tax, but chose to abolish it for political reasons.

"Almost all economists like property tax. It does not affect people's decisions to work. The properties can not move out of the country, "said Marika Lindgren �sbrink.
As the newly appointed economic policy adviser to the Socialist Party leadership,  Marika Lindgren �sbrink will play a key role in seeing that the new policy will be chiselled out. But she would not give exact information about how a new property tax should be.

"But it's not about going back to what has been. Shall we do a tax reform, we need new proposals and new versions, "she says.

The party's earlier proposal to reintroduce capital tax was met with thumbs down, even if Marika Lindgren �sbrink believes that the tax system should become more progressive.

"I basically think I feel it is better to bring in taxes through property taxes than capital gain tax.”
The government's tax deduction may be both good and bad. The first tax cuts, which had been previously criticized by the Social Democrats, has probably created some new jobs, consider Marika Lindgren �sbrink. But then, the effect has waned.


"They had perhaps been able to settle for a tax deduction. The fifth step, I believe it to have have a minimal effect on employment, "she said.
Marika Lindgren �sbrink is highly critical of the controversial house hold help tax concession for household services. It creates little or no new jobs and is also problematic from a distribution policy perspective. Still, she believes that the Social Democrats should drop the issue and let policy remain as it seems popular with voters.

"It became almost ridiculous lot of focus on house help tax concession during the election campaign. There we can not go again ", she said "I do not think that this is a good deduction. But I do not think it is so important to you have to remove it. Then it is better to look at other taxes ".

Marika Lindgren �sbrink will begin her new assignment on May 9, when she takes a position alongside the party's economic policy spokesman Tommy Waidelich.
But while Waidelich will be base in Swedish parliament, Marika Lindgren �sbrink  will work directly for the party leadership. She will also participate in the party's major tax investigations.
"I am employed by the party leadership team and will primarily be working for Hakan Juholt and J�mtin, the party secretary, not directly to Tommy Waidelich. But we will obviously have a common global approach, "she says.
By Team

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