Political Reactions

"Red-Green Budget Threatens Jobs"

The centre right government parties claimed that the red-green budget proposals with the increased taxes would threaten jobs and the recovery of the economy.

They say that they will not increase the taxes for low and middle income earners, but the taxes will be higher for three million employees, said prime minister Fredrik Reinfeldt at a press briefing on Monday.

It is in particular the proposal to lower the tax-rebate for those who earn over 5,500 US dollars per month, and the increased fee for those who do not have an unemployment insurance, that will mean higher taxes and cost for for many, Reinfeldt told the news agency TT.

The trade union for academics, Saco, welcomed the proposal to raise the ceiling in the unemployment benefit, but the Saco chair Anna Ekström was disappointed the plans for the tax increases did not include a broader review of the tax system. "We need broader, simpler and clearer taxes and fewer rebates and exceptions," she told TT.

"Sweden already has the highest marginal tax in the world, and a higher tax on income and work risk threatening the new jobs," Anna Ekström told TT.

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