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Fatter Paycheck for Swedes in January

Published fredag 23 januari 2009 kl 12.38

Despite gloomy predictions for 2009, this month’s pay means more money in the pockets of Swedes in regular employment. But not everyone is satisfied.

The third step of the Government’s scheme offering tax breaks for those in employment was implemented from 1 January this year.  Critics have claimed that the scheme is designed to give more money to high income earners, while leaving very little to those with less significant earnings, or none at all.   

For those on unemployment benefits or on other state help, the scheme has next to nothing to offer. The grand total of the tax reduction for a year for someone on unemployment benefits will amount to under 500 kronor per year. This can be compared to the tax reduction of 11,664 kronor a year for those in the high income category.

The gap between high and low income earners in Sweden continues to grow. Despite this the situation is looking up for many, and the new tax reduction scheme will result in more households having extra money to spend.

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