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Government Proposes More Tax Cuts

Published torsdag 28 juni 2007 kl 13.06
Finance Minister Anders Borg

Sweden’s Finance Minister Anders Borg has proposed further tax breaks for people with jobs, designed to boost the incomes of low and middle wage earners.

Borg says that if fully implemented, the changes would amount to 1.57 billion US dollars in tax cuts for those who are employed.

The cuts do not apply to the unemployed, as an incentive to encourage joub-hunting.

Borg has presented two alternatives for tax cuts to be inttroduced in January 2008. The other alternative would cut taxes by 1.2 billion dollars, and would  be introduced if the national finances do not permit higher tax cuts.

Under both proposals individual deductions would be raised from 4,500 to 5,400 dollars.

Borg does not explain however, how the tax cuts would be financed, saying that details would be presented in the autumn budget.

Both the OECD and Sweden’s central bank, the Riksbank, have warned the government of the dangers of pursuing an expansive economic policy, particularly when the Swedish economy is enjoying a period of strong growth.

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