Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Investments in Households - "No Major Difference"

Lowered tax on work and pensions will entail a certain strengthening for Swedish households. But it's not about large sums, believes private economist Arturo Arques. I don't think pensioners will jump for joy, he says.

» Published: 05 September 2024

Investments in Households - "No Major Difference"
Photo: Anders Humlebo/TT

The Government, together with the Sweden Democrats, wants to strengthen the job tax deduction in the upcoming budget. Furthermore, they will lower taxes for pensioners and ISK taxes.

It will be a certain strengthening for households, it's 18 billion kronor after all, says Arturo Arques, private economist at Swedbank.

On average, the parties expect a tax reduction of 2,600 kronor per year for wage earners, and for pensioners, it's about 1,400 kronor more in their pockets per year, or approximately 117 kronor more per month.

It's not big things, says Arques further and adds:

But if you live on the margin and, for example, get 2,600 kronor per year, it's more than nothing. Anything that gives a clinking sound in the cash register for households is good in the current situation.

"A signal value"

Shoka Åhrman, savings economist at SPP, believes that the proposals are good and will strengthen the purchasing power of households.

"But for ordinary people, and especially those with mortgages, the interest rate situation will likely have a more direct effect than the budget", she says in a written comment.

The governing parties want to introduce a tax-free basic level for savings on investment savings accounts (ISK) – in 2025, savings will be tax-free up to 150,000 kronor and in 2026, it will be increased to 300,000 kronor.

What's important about this proposal is that it gives a signal value – everyone needs a savings buffer for unexpected expenses. Giving incentives to people to really prioritize a savings buffer can make a big difference, says Arturo Arques.

Makes a difference

In the autumn budget, the Government and SD also want to extend the supplementary allowance for housing allowance until June 2025. It's likely the part that will make the most difference going forward, believes Arturo Arques.

Many families with children receive this allowance, and I think this has greater significance than the other proposals. It's something that makes a difference, he says.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

New French obstacles for Airbnb
1 MIN READ

New French obstacles for Airbnb

The Government Seeks Support for Those Affected by Northvolt
1 MIN READ

The Government Seeks Support for Those Affected by Northvolt

The regional tax will be raised next year
1 MIN READ

The regional tax will be raised next year

Astra Zeneca's China Chief Arrested by Police
1 MIN READ

Astra Zeneca's China Chief Arrested by Police

More rate cuts - but risk of turmoil with Trump
2 MIN READ

More rate cuts - but risk of turmoil with Trump

Svantesson: Trump's policy may increase inflation
2 MIN READ

Svantesson: Trump's policy may increase inflation

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Central Bank Economist: Central Bank Cuts Interest Rate Too Late
2 MIN READ

Central Bank Economist: Central Bank Cuts Interest Rate Too Late

How You Are Affected by Lowered Interest Rates
2 MIN READ

How You Are Affected by Lowered Interest Rates

Thedéen expects turmoil after Trump's victory
2 MIN READ

Thedéen expects turmoil after Trump's victory

Inflation upswing does not threaten interest rate cuts
3 MIN READ

Inflation upswing does not threaten interest rate cuts

Stockholm Stock Exchange rises after interest rate cut
1 MIN READ

Stockholm Stock Exchange rises after interest rate cut

Most up on Asian stock exchanges
1 MIN READ

Most up on Asian stock exchanges

This is how your wallet can be affected by Trump's victory
2 MIN READ

This is how your wallet can be affected by Trump's victory

Cheerful on Wall Street after Trump win
1 MIN READ

Cheerful on Wall Street after Trump win

Thousand-kronor notes to be picked up when the Central Bank increases the pace
3 MIN READ

Thousand-kronor notes to be picked up when the Central Bank increases the pace

Swish up and running again after disruption
1 MIN READ

Swish up and running again after disruption

Trump's company is soaring on the stock exchange
1 MIN READ

Trump's company is soaring on the stock exchange

Swedish Export Threatened by Trump Victory
2 MIN READ

Swedish Export Threatened by Trump Victory

Sameby's appeal against mining company rejected
1 MIN READ

Sameby's appeal against mining company rejected