The Government and the Sweden Democrats are reducing taxes for high-income earners by abolishing the phase-out of the earned income tax credit.
It makes me a bit angry because it shows that the Government does not understand how ordinary people are doing today. It's a mockery of families who are struggling to make ends meet, says Mikael Damberg (S) to TT.
"The Government and SD have revived the old horse manure theory. I thought that theory was dead and buried. They're reducing taxes for the very richest – with the motive that crumbs will fall to the bottom", writes LO economist Torbjörn Hållö in a comment to TT.
"Hocus pocus"
The tax reduction will apply to those earning from 65,000 kronor and up to around 180,000 kronor per month and is expected to cost around 4.7 billion kronor. The hope from the Tidö parties is, however, that it will self-finance since more people are expected to work more.
It's hocus pocus. As soon as The Moderate Party wants to implement a tax reduction, they hope and believe that it won't cost anything. But the fact is that they're indebting the entire Swedish people to implement this, as they're running a deficit in the state budget.
The Confederation of Swedish Enterprise's chief economist, Johan Grip, on the other hand, believes that the announcement is extremely welcome.
"Finally"
"This strengthens the incentives for more people to work more. The Minister of Finance has found his courage, finally, the bourgeois policy is coming", says Johan Grip in a comment to TT.
For companies struggling with weak demand, this comes at a "good time", continues Grip.
"Now all that's missing is for the state income tax to be reduced."
The Left Party leader Nooshi Dadgostar, on the other hand, believes that it's a terribly bad prioritization that won't boost growth.
Now the Government has lost all contact with reality. It's bizarre to make a wealth transfer to the highest-paid in the country, she says.
