The Government has Abandoned the Work Line

The Centre Party is focusing on reducing employment costs for companies in its shadow budget. The work line has been completely abandoned by the government, says party leader Muharrem Demirok.

» Published: October 02 2024

The Government has Abandoned the Work Line
Photo: Claudio Bresciani/TT

The Centre Party proposes in its budget motion that the first ten employees in a company will be tax-free, without employer contributions, for two years.

Employer contributions will also be permanently reduced for individuals on entry-level salaries, up to 27,000 kronor.

Demirok says that many job-creating companies are going bankrupt now. He emphasizes that Sweden has a high unemployment rate of 8.4 percent.

Sweden is becoming poorer when fewer people go to work.

No to abolished air travel tax

The party retains the income tax cuts announced by the government, including reduced marginal taxes, but wants to reform them to target people with low incomes.

For a person with the lowest income, up to 24,000 kronor, the tax will be 2,000 kronor lower per year – twice as high a tax cut as the government, according to the Centre Party.

We must focus on those with the lowest wages so that they have maximum incentives to enter the workforce, says the party's economic policy spokesperson Martin Ådahl.

As an integration measure, the party wants to introduce something called "start-up years" with intensive studies in Swedish and practical training.

The Centre Party also says no to the government's re-immigration grant of 350,000 kronor per person and does not want to abolish the air travel tax. Keeping the air travel tax costs around 900 million kronor per half-year.

Petrol and diesel

The Centre Party says no to the government's plans to reduce the tax on petrol and diesel next year, which would mean a saving of 3.2 billion kronor.

We have accepted many of the government's tax cuts on fuel. The prices of fuel have also decreased significantly. Therefore, we think it's important that schools shouldn't be closed and that defense should be strengthened, says Muharrem Demirok.

Instead, the party wants to introduce a "people's bonus" of up to 50,000 kronor to buy or lease new or used cars with low emissions.

The party also wants to abolish the indexing, i.e., the increase, of the electricity tax. It is "unreasonable" that green electricity is taxed more heavily than fossil diesel, Demirok emphasizes.

The Centre Party finances part of its proposals by phasing out unemployment insurance more quickly and abolishing the tax deduction for unemployment insurance membership. The party also wants to abolish the two-child allowance.

The Centre Party's budget motion for 2025 in brief:

Reduced employer contributions for entry-level salaries: 5 billion kronor

Ten tax-free employees: 310 million kronor

Start-up years: 1 billion kronor

People's bonus for environmental cars: 5 billion kronor

Compensation for electricity connection of electricity production: 900 million kronor

Abolished indexing of electricity tax: 910 million kronor

Grants to the school sector: 5 billion kronor

Increased aid: 1.7 billion kronor

Grants to the healthcare sector: 1 billion kronor

Financing:

Phasing out of unemployment insurance: 6.5 billion kronor

Abolished tax deduction for unemployment insurance: 1.6 billion kronor

Abolished two-child allowance: 1.3 billion kronor

Re-prioritization in labor market policy: 4.5 billion kronor

Reduced allocation to Samhall: 2.5 billion kronor

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By TTThis article has been altered and translated by Sweden Herald

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