The spring budget was not a wallet budget at all. There were no household-related reforms at all Elisabeth Svantesson presented the government’s priorities on Monday.
It has News24 already reported on earlier.
But it is also not intended that the spring budget should contain any new budget policy. Traditionally, it has always been the autumn budget that has meant the biggest changes for both Sweden and for Swedish households.
DO NOT MISS: Sign up to receive Nyheter24 Din Ekonomi directly in your email by clicking on this link.
The inflation monster defeated – finally
And in the fall, you can see several likely economic reliefs in the moderate-led government’s proposals. At least SEB’s private economist predicts that Americo Fernandez.
– When inflation was at its worst, they didn’t want to stimulate consumption with tax cuts because that could drive up inflation. But now the inflation monster can be considered defeated, he tells Nyheter24.
Low national debt
You can start with what you know, he says.
– Sweden has a low national debt and thus stronger financial muscles to increase spending compared to many other economies, says Americo Fernandez.
Reduced tax on savings
A reform flagged for in, among other things, the Tidö Agreement, i.e. the list of reforms to be implemented by the government together with the Sweden Democrats, is reduced tax on savings within the framework of investment savings accounts, ISK – Sweden’s most common form of savings.
Nyheter24 has already reported on the reduced tax earlier.
– The idea is to remove the tax on all ISK savings under SEK 300,000, and it will probably cost SEK 7-8 billion.
Increases Swedish ranking internationally
Sweden traditionally has few incentives to save money in terms of taxes.
– Sweden has received criticism for this internationally from, among others, the EU Commission, the IMF and the OECD. This can elevate Sweden in international pension rankings.
Most people get a tax cut of SEK 760
The average Swede has 74,000 kroner in their ISK account, and therefore most will receive a reduction of approximately 760 kroner.
But those who save more will get a bigger reduction. Anyone who has SEK 300,000 or more in their ISK account will receive SEK 3,270 in reduced tax per year, which may mean that those who have the most will also receive the most.
Criticism from authorities: Increased tax planning
The proposal has received criticism from several heavy-handed authorities because those with more money can tax plan by transferring money to their children’s accounts.
But this may mean that those who have, for example, SEK 1.2 million in household savings and can divide it into four accounts, for example for two adults and two children, can receive a tax reduction of over SEK 12,000.
But that would mean an increased incentive for Swedish households to save, says Américo Fernández.
139,000 children may receive back tax on the return – they are affected
High income earners’ tax can be reduced
Another tax that can be reduced is the state income tax for high income earners, which those who earn over SEK 50,000 a month must pay to the state.
One million Swedes pay state income tax. All of them are affected by a possible tax cut.
– This year the government froze the strata limit for state income tax. This meant in practice that more people had to pay the tax, as those who got a raise and crossed the threshold now had to pay the tax.
It gave the treasury SEK 11 billion more in revenue, but it was not popular.
Many of the Tidö parties’ voters were critical of the government raising the state tax, and therefore one can imagine that the autumn budget means revenge for the high income earners.
– Possibly the government can compensate by restoring the strata limit and at the same time strengthening the employment tax deductions again, but that is speculation, says Américo Fernández.
The employment tax credit is extended
The employment tax deduction gives many Swedes several thousand Swedish kroner more in their wallets. Those who earn between SEK 38,582 and SEK 64,654 a month get the most. They receive SEK 3,578 a month in deductions. Those who earn more than that get less and less tax deductions, and those who earn SEK 184,000 a month get no deductions at all.
Most recently, in the autumn budget, the deduction was increased by SEK 200 a month.
– Another strengthening of the employment tax credit is on the cards, but how much the tax will be reduced this time can only be guessed at, says Américo Fernández.
Read more about finances and taxes:
Sign up to receive Nyheter24 Din Ekonomi directly in your email by clicking on this link.
Your reduced tax of SEK 3,270 threatened: “Punishes frugality”
139,000 children may receive back tax on the return – they are affected
90,000 small savers sniffed the big box – are you affected?
That’s how you get an interest rate reduction right now – with the bank trick