Anyone who earns over a certain amount – currently just over SEK 51,000 – must pay an extra 20 percent in state income tax. The amount is normally raised automatically in line with inflation, but now the Tidöparties have chosen to stop the calculation.
The government is stopping the automatic increase in the cut-off point for state income tax, says Finance Minister Elisabeth Svantesson (M) to TT.
If the cut-off point had been automatically adjusted up at the turn of the year, the limit would have landed at close to SEK 57,000, which would have been a tax break for many high-income earners.
The decision means that twelve billion kroner will be released for other investments in the budget. Which Svantesson does not want to say yet.
SD demanded the breaking point
In the Tidöpartierna’s negotiation on the autumn budget, the Sweden Democrats already opened two days ago not to calculate the tax break point.
It was speculated whether it could lead to friction between M and SD in the negotiations – but now the Tidö parties have agreed to depart from practice and not raise the limit for the state income tax.
Muf directs strong criticism
The Moderate Youth Association, Muf, writes in an email to TV4 Nyheterna that they are “raging against the government’s budget announcement”.
– Sweden has the lowest growth in the EU. In that situation, it is deplorable that the government chooses to make it less profitable to train for and work as, for example, an engineer, says Douglas Thor, union chairman, Moderata Ungdomsförbundet.”
– This is incredibly stupid. Especially since it sets an example for the future that you can just ignore raising the breakpoint. It will be worst for us young people, whose future will be poorer when it becomes less worthwhile to get an education and work in growth professions.