Million rain over high-income earners in the autumn budget

Anyone with income above SEK 703,000 is favored and for those with really high salaries it can mean a supplement of several million SEK.

Finance Minister Magdalena Andersson, who according to his own statement does not really want to remove the tax on taxes, but still does, will wipe out his cash with over SEK 45,000 next year. That the tax on taxes will be abolished in the coming autumn budget does not depend on the government's agreement with the Center and the Liberals and their party leaders. Nyamko Sabuni (L) and Annie Lööf (C) receive more than SEK 40,000 each given the current salary situation.

What should you do for the money?

- Of course, it's a lot of money. It is important that we consume, the more we can consume the better for the country, says Nyamko Sabuni.

The scrapped wage tax will not make poor people less in the wallet next year, but the high-paid will definitely be richer, which means saving on the already growing income gaps.

In 2007, Sweden was the EU country with the least income difference, today we have larger income gaps than all our Nordic neighboring countries. At the same time, Sweden has the world's highest marginal taxes, that is, the tax that you pay on your last earned thousand, and therefore many economists welcome the new reform, even though they are concerned about the income gaps.

- I make the assessment that the abolition of the protection tax is self-financed because people work more and educate more. But it may take a couple of decades before the state gets back the money, says the National Institute of Economic Research's Director General Urban Hansson Brusewitz.

Professor Lars Calmfors agrees.

-We don't think it's going to cost anything in the long run. The problem is that it contributes to increasing income inequalities and therefore we are many economists who press that one should combine this with other measures such as raising capital tax, for example, says Calmfors.

The January agreement states that a tax reform should equalize economic gaps. But none of the government's partnering parties are willing to raise, for example, the capital tax, which would have that effect.

- The liberal answer to this is that more people should have a job to go to, to be lifted from contributions into their own livelihood. It is by far the most effective way of reducing the economic gaps, says Annie Lööf.

- I think the most important thing is to reduce exclusion and make sure that more people want to work more, says Nyamko Sabuni.

From the left, no one applauds the abolition of the tax on taxes, in particular not LO's chief economist. He doesn't think high-income earners will work anymore.

- If you look at what the income statistics look like today, there is no hump just under SEK 60,000 that there should be if the withholding tax should be a problem for people. I think this money would benefit more from others, says Ola Pettersson, chief economist at LO.