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Lower Taxes for High-Income Earners

The Government and the Sweden Democrats are lowering taxes for high-income earners. This is done by removing the phase-out of the earned income tax credit. Now we are removing the last hidden tax, says The Liberals' Cecilia Rönn.

» Updated: 28 September 2024, 23:28

» Published: 13 September 2024

Lower Taxes for High-Income Earners
Photo: Henrik Montgomery/TT

The proposal is being presented as part of the 2025 budget.

The proposal benefits those with a monthly salary of 65,000 kronor and up to approximately 180,000 kronor per month, and involves reducing the marginal tax rate from 55 to 52 percent.

A person earning around 150,000 kronor per month will see a reduced annual tax of approximately 35,000 kronor, or around 3,000 kronor per month, as a result of this proposal.

"Important principle"

Sweden is now approaching the important principle of keeping half, according to Cecilia Rönn, economic policy spokesperson for The Liberals.

She motivates the tax reduction for high-income earners by saying that economic growth is important, and that it should be worthwhile to work, educate oneself, save, and start a business.

You're presenting quite a few proposals in the budget for those who may be better off. Is that the most important thing to do now?

I would say that the most important thing is that we get growth going and that we also send a signal that work, education, saving, and personal responsibility should pay off, says Rönn.

Costs 4.7 billion

Of course, we should have a safety net without holes when you fall. But we'll only get that if we make sure to increase economic growth and that everyone who can contributes, she continues.

The initiative costs the state 4.7 billion and is, according to the government's hopes, self-financed since it builds on people working more. According to her, the abolished wealth tax showed that this was the case.

Now we're removing the last hidden wealth tax.

Even older people get a reduced tax since the phase-out of the increased basic deduction is being removed. The really big winners are older people who work and have high incomes. They get a double effect and can get a tax reduction of up to approximately 6,000 kronor per month.

In parallel, the Tidö parties are reducing taxes for almost everyone by increasing the job tax deduction, according to a proposal the parties presented last week. This tax reduction gives an average reduction of 1,900 kronor per year or 160 kronor per month.

Source: The Government

Around 450,000 people will be affected by the Tidö parties' proposal to reduce the marginal tax rate, remove the phase-out of the job tax deduction, and increase the basic deduction for those over 65 years old.

Source: The Government

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By TTThis article has been altered and translated by Sweden Herald

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