When Finance Minister Elisabeth Svantesson (M) presented the government’s budget on Tuesday, she was clear that it will now be more expensive to live. At the same time, inflation means that the levels for more benefits – such as the guarantee pension, parental allowance and the student grant – are added up.
There will also be increased basic deductions and employment tax deductions, as well as an increased limit for when wage earners must pay state tax, in addition to the municipal tax. Today, anyone who earns around SEK 46,200 a month must pay state tax on the excess amount. Next year, that limit will be raised to 51,200.
Before basic deductions and employment tax deductions, this means about SEK 12,000 less in tax next year for those with a salary above the cut-off point.
Met with criticism
That the government does not pause, or at least adjust, this enumeration faces criticism.
– Normally it is reasonable to have an enumeration, but now that we have a difficult economic time with great uncertainty, it is reasonable that high income earners may not get a tax cut, says Elinor Odeberg, chief economist at the union-funded think tank Arena idé.
Elisabeth Svantesson (M), however, does not believe that this is a tax cut. In an SMS to SVT, she writes:
“The fact that the cut-off point for state income tax is raised is not due to a decision from the government, but every year a series of allowances and limits regarding taxes are adjusted automatically according to current legislation. That was also done under the previous government.”
But Elinor Odeberg is adamant that it is still a political decision, and points to the opportunity for the politicians in the finance committee to act before the budget is voted through in the Riksdag.
– It is theoretically possible, but I find it very difficult to see it happening that way. No one has raised that issue in the negotiations that have preceded this budget bill, says the Sweden Democrats’ economic policy spokesperson Oscar Sjöstedt.
Damberg (S): I think it is unreasonable
Shortly, Mikael Damberg (S), economic policy spokesperson, will present the Social Democrats’ shadow budget. Like Elinor Odeberg, he is critical of the government not doing anything about the automatic raising of the cut-off point. But at the same time does not want to tell you what the own shadow budget contains for proposals in the area.
– I think it is unreasonable to give such a large tax cut to those with the highest incomes, but all people are affected by the high inflation and then it is reasonable that everyone also gets something.
So not fix the limit completely, but adjust it somewhat?
– It could be, but I will return to that in a couple of weeks when I have finished the budget, says Mikael Damberg.