Autumn Budget

Reinfeldt Announces Further Tax Cuts

Prime Minister Fredrik Reinfeldt has announced a further cut of the income tax as of Januart 1st 2010. According to Reinfeldt the so-called fourth phase of lowering income taxes will cost the state nearly $US 1.4 billion.

During an open air event in downtown Stockholm Reinfeldt and the leaders of the three other coalition parties said this fourth step of reducing income taxes would mean that 99 percent of the working in Sweden will pay up to $US 200 less in monthly taxes than under the former Social Democratic government.

Speaking to reporters Reinfeldt rejected criticism express by some economic experts that lower income taxes would not automatically lead to more jobs. On the contrary, Reinfeldt maintained, figures in other countries would prove that low taxes can create new jobs.

Earlier, the left opposition announced they would raise taxes if they were to win next year’s general election – citing that the incumbent government’s policy was to weaken the state. The center-right government intends to present its full autumn budget on Monday.