The Swedish conservative government's tax policy reminiscent of all conservatives politics - make the rich richer
Friday, 11 October 2013
More than 25 percent of the Swedish government's tax cuts and other
initiatives programmed for next year will go to the tenth of the
population who earn the most. A news analysis out today which has been
examining the effects of the new government tax policy made that
The sector of the population with the least income will, however, only
see a meagre 1 percent increase in their benefit from the current
Conservative government. This comes from analysis made by the Swedish
Parliamentary Research Service, which has produced some data analysis
for the opposition parties.
Every year, the Parliamentary Research Service usually help the
opposition parties examine how the government's budget will affect the
various facets of the society.
“We do not think it is a good development in which those who are
getting richer are getting richer, and those who are poorer are
gradually falling behind,” says Per Bolund, economic policy spokesman
for the Green Party to radio Sweden.
The government has unveiled a series of tax cuts and other changes to
its budget - and about some Skr18 billion will go to households next
year. Prime Minister Fredrik Reinfeldt usually emphasise that the tax
cuts are targeted to affect low and middle income earners. During the
recently televised party leaders’ debate last Sunday, he said on
increased the Earned Income Tax Credit that this will affect common
people such as nurses – the common people will get the tax cut.
It has now been analysed to determine who’ll benefit from the spoils of
the budget and it shows that the richer the earner is the less taxes
Commentators are now saying the action is similar to what right wing
Conservatives’ parties usually do – pay their wealthy pals more and
claim that the low earners should work harder and gain more education
to reach their high paying threshold. For them a society that works
very hard will see everybody earning higher and everybody likely taking
more risks, starting businesses and running their own organisations.
For the Conservatives, a society that works hard will not have weak
people and will not have people who need support.
Therefore income earners above Skr42 500 a month would receive an
average of Skr6,000 more in their wallets next year. For those with the
smallest incomes - those earning less than Skr7,800 a month – they’ll
get tax credit and other investments reaching less than Skr300, on
average over one year.
A contributing factor to the income distribution emerging this way is
that the government has increased the earning threshold - that is
the limit which people will have to earn before they start paying state
“All income groups, all the people in different income groups are
better off straight across, and it's a pretty fundamental difference
between how the Swedish economy has developed, compared to many other
countries,” says Ulf Krister Andersson, the Moderate party’s social
security minister to radio Sweden.
Asked what is the justification that anyone earning more than Skr50 000
keeps over Skr6,000 more in taxes, while those who have little income
and work very hard get a few hundred.
“I think that the great justice overall is that more people get to keep
more of their pay. It is an important thing. Then you can always say
that in the short term, all is not exactly what you want. But I think
in the long term, it is important to know that if I work, I get to keep
more of my salary, if I work extra, or get a new job or educate myself
more, I get to keep even more. That is a fundamental and long-term
condition for us to have high levels employment in Sweden,” says
However, Per Bolund, Green Party's economic policy spokesman believe
that the government is doing a very wrong analysis. He feels that a
major factor affecting the economic disparities is rather caused by
poor education which makes it hard for people to have a good jobs
security system. Therefore a good school system, is a great way to
start helping students and future graduates to believe.
By Scancomark.com Team