Moderate Party Proposes Gradual State Income Tax Reduction

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Moderate Party Proposes Gradual State Income Tax Reduction
Photo: Christine Olsson/TT

The Moderate Party wants to reduce the state income tax. In addition, young people will have to pay much less tax on their first earned money, if The Moderate Party gets to decide.

The Moderate Party wants to reduce the state income tax, i.e. the state tax that high-income earners pay, by having it "phased in gradually".

This was voted through by the party's congress on Friday. The congress also decided that the marginal tax rate should not be able to exceed 50 percent.

We want first and foremost to reduce taxes for low- and middle-income earners, says Finance Minister Elisabeth Svantesson (M) and continues:

But it is also reasonable to reduce the marginal tax rate, because we still have one of the highest in the world.

Wanted to abolish completely

According to Edward Riedl (M), chairman of the Riksdag's Finance Committee, the ambition is also to raise the threshold for when the state income tax kicks in, so that fewer people pay state income tax.

Policemen, nurses and teachers often reach the tax threshold at some point in their lives, and then it (the state tax) hits very hard, he says.

There were also Moderates who proposed that the state income tax should be abolished completely, a proposal that did not go through, however.

The Moderate Youth League (Muf) managed to get some changes into the original program from the party board before the vote on Friday.

Among other things, a proposal that the first money a young person earns should have "very favorable taxation". Muf's proposal that it should apply to the first half a million and be completely tax-free was, however, toned down.

We are very pleased, we chose to compromise, says Muf's chairman Douglas Thor,

Rejection for child deduction

On the other hand, Muf did not get through its proposal to abolish child allowance in favor of introducing a "child deduction", i.e. a tax deduction for those who work instead of a benefit.

The Moderate Party's congress instead voted through a proposal to review whether the child supplement should be linked to income tax on employment.

Another proposal that the congress voted through was to phase out the state green credit guarantees, which the Riksgälden can issue and which the government has paused.

A question that became relevant with the bankruptcy of Northvolt. According to the Moderate Party, there are other ways for the state to support the green transition.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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