The line of work and job tax deductions were the most important reforms during Fredrik Reinfeldt's tenure as prime minister. The government's estimate then was that the various job tax deductions in the years 2007-2010 would eventually create 70,000-140,000 jobs.
Even today, the Moderates are pushing the idea of job tax deductions. The party's budget motion for this year's Riksdag proposes a job tax deduction of SEK 3,200 per year for everyone with income above SEK 13,000 / month. But today's moderates go further than that. They are now also proposing major tax cuts for those with higher incomes. On the one hand, the abolition of the tax on taxes, which the Moderates under the Alliance government were opposed to abolishing, but is now in favor of, and also an escalation of the state tax from 20 to 17 percent. State tax pays the person earning over about 41,000 SEK / month.
During the Moderate General Meeting that took place this weekend, votes were also raised for the party to go even further in its ambition to reduce taxes and abolish the state tax entirely. However, that proposal was rejected by the AGM.
Agenda has, with the help of Madelén Falkenhäll, senior analyst at Swedbank, calculated on the Moderates' tax proposal. We have chosen four different income levels and are based on the municipal tax level in the municipality of Västerås, where the Moderates party meeting is held.Here is Swedbank's calculation:
In our report, economist Eva Mörk is also interviewed about the effect of the job tax deductions. She is a professor of economics and in 2012, together with three other economists, made the first scientific study that sought to evaluate the effects on employment of the job tax deduction. They concluded that it is not credible to say that the job tax deduction has increased employment but also cannot rule out the fact that this has happened. Scientifically, neither one nor the other can be determined scientifically.
New research on the job tax deduction shows that it may just as well be the austerity measures of the welfare systems implemented at the same time as the job tax deductions that have had an effect on employment.
Here is the Swedish researchers' article on their study in Economic Debate
And here is American research on the same subject.
Eva Mörk was appointed professor of public economics at Uppsdala University in 2010. She has previously worked as a researcher at the state research institute IFAU. Eva Mörk has been a member of the prize committee for the Swedish Riksbank's prize in economic science since 2011 in memory of Alfred Nobel.
In the spring of 2016 Eva Mörk and a group of researchers for research cheating were notified. Later that year, they were released by the Central Ethics Review Board.