Monday, October 06, 2014

Tax Rise For High Earners In Sweden

Via The Local:

Sweden's new coalition government has agreed to raise income tax for those earning more than 50.000 kronor ($6914) a month.

The deal was a compromise between the Social Democrats and their junior coalition partners, the Green Party, which had wanted the rise to kick in at 40.000 kronor.

Prime Minister Stefan Löfven had previously suggested a figure of 60.000 kronor.

The government has also agreed to lower taxes for some pensioners who were previously being taxed more than workers with similar monthly incomes.

On Monday the coalition also presented details of its plans to ensure that Sweden's schools and hospitals are not run by companies or individuals who are purely motivated by making profits.

Stefan Löfven and Green Party spokesman Gustav Fridolin, along with Jonas Sjöstedt and Ulla Andersson of the Left Party, revealed details of the new deal on a "welfare system without a profit motive".

A special team will be appointed in January 2015 and tasked with developing legislation and presenting suggestions on how profits can be used to improve services.

The findings will be presented in March 2016.

The aim is that any profits should be reinvested within the service that generated them.

"Owners of companies within the welfare sector will have to be able to prove that they are interested in providing a service, not making a profit", said Left Party politician Andersson.

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