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.
“The coalition government has agreed on reforms for jobs and entrepreneurialism that will increase employment in the long-term. It has to be more profitable to work and more companies should be able to hire employees,” the government said.
Here in Princeton one of the things one hears when one complains about the astronomical taxes is, “Well, Sweden’s are higher.” Now that argument is dead. As John says,
We noted here that the United States has the most progressive income tax system in the developed world. That’s right–embarrassingly enough, more progressive than Sweden’s.
the U.S. collects more household tax revenue from the top 10 percent of households than any other country and extracts the most from that income group relative to their share of the nation’s income.
And if we get government healthcare, that will be only the beginning:
Obama has said he favors a government-run insurance program to compete with private insurers. While he has suggested he wouldn’t make it a requirement as part of final legislation, other Democrats including House Speaker Nancy Pelosi of California have said it must be part of any bill.
“Replacing your current health care with a government-run system is not the answer,” Myrick said.
Myrick also said the health-care proposals would lead to tax increases on small businesses that would lead to the elimination of more than 1.6 million jobs.
“This is the worst possible time to be imposing new, job- killing taxes,” Myrick said.
I would say “hold on to your wallets”, if only we would have our wallets left.
Post re-edited to include a section initially left out.