Tax reduction to widen income gap
A tax reduction on wages which the Swedish centre-right coalition government intends to introduce next year will mean increased income for people who are employed, while those who are on temporary parental leave will not directly benefit, Swedish Radio News reports.
A woman on paid parental leave who receives SEK 22,000 per month will be able to keep 15,400 after taxes, while a person who receives the same amount in wages will have an after-tax income of 17,000 kronor, a difference of SEK 1,600 per month.
Neverthess, Minister of Gender Equality Maria Arnholm says the intention of the tax reform is not to encourage parents of young children to work rather than take advantage of parental leave. She says that very many women with low incomes will benefit from the tax cut when they rejoin the job market.
The proposals, presented on Friday, will form part of next Wednesday's Autumn Budget. The Social Democrats also presented several shadow budget proposals on Friday.