Faced with a declining economy, the Swedes have decided to take a page out of Ronald Reagan’s playbook:
Sweden’s centre-right government on Saturday announced income tax cuts of 10 billion kronor to stimulate the job market, its primary objective.
Prime Minister Fredrik Reinfeldt and three other ministers in the four-party coalition said the reduction would mean most wage earners would have 200 to 250 kronor (20 to 25 euros, 29 to 36 dollars) more in take-home pay every month.
The proposal, to be presented to parliament on Monday as part of the 2010 budget bill, is the fourth leg of a tax cut programme introduced in January 2007 to stimulate employment.
The fourth leg would enter into force on January 1, 2010.
With that step, 99 percent of full-time employees will have had their taxes reduced by a total of 1,000 kronor per month, while 75 percent will have had reductions of 1,500 kronor, the government said.
Interestingly enough, the tax cut seems to be aimed as much at citizens who’ve grown too comfortable living off the dole as it is at stimulating the economy:
Since coming to power in late 2006, the government has launched a series of measures aimed at inciting Swedes to return to the job market instead of living off of state subsidies.
Wow. Maybe they should try something like that here, huh ?
[...] reporting. 60% of those surveyed claimed that the news organizations are politically biased. Sweden Teaches Barack Obama A Lesson In Economics – belowthebeltway.com 09/19/2009 Faced with a declining economy, the Swedes have decided to [...]
While the Swedes all complain about taxes being too high, most of them feel entitled to the pre-natal to grave government care they’ve gotten used to. Any attempt to wean them from some of these benefits (minimum 6 weeks vacation, l year parental leave w/ pay etc.) causes high discomfort, especially among the retirees.
It would be good if you would include what the tax rate is. Is their tax rate 20%, 30%, 50%, 70%? I don’t know.
The top rate is 57%; average rate ca 50%.
Add to that a 25% Value Added Tax.