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.