Changes in taxes hit the country unevenly

Statistics Sweden has, on SVT's behalf, investigated how the tax changes in recent years have been distributed among the inhabitants of the country's municipalities. It turns out that some tax changes have clearly benefited some parts of the country more than others. This is particularly evident when it comes to changes in properties and assets and the removal of the tax on taxes.

In these cases, local residents around the country's major cities are particularly big winners, while local residents in sparsely populated areas, primarily in inner Norrland and western and central Svealand, have benefited less.

Sandro Scocco, chief economist at the left-wing think tank Arena Idea, believes that tax policy has contributed to widening regional gaps.

- We have seen tax cuts on high incomes and capital over the past decades and we know where those who have high incomes and high incomes on capital live somewhere. These individuals have received a huge boost in their income, says Sandro Scocco.

The effects of the job tax deduction have been more evenly distributed across the country. These changes have benefited municipalities with a high proportion of average income earners and therefore have a wider spread. Next year, a tax reduction of SEK 137 per month will also be introduced for sparsely populated residents in northern and western Sweden. Nor does everyone agree that high-income earners have been particularly favored by tax changes in recent years.

- If you take the social security contributions and the high visible tax on work, it will be significantly higher on high incomes. However, it is true that reduced taxes on real estate and similar assets have led to wealth increases for those who are wealthy, says Magnus Henrekson, CEO of the Institute for Business Research.

Sandro Scocco, on the other hand, believes that it is necessary to rethink the tax policy:

- I think we need to tax those with the highest incomes and those with the most capital to redistribute resources across the country.

Instead, Magnus Henrekson warns that taxing wealth and high income can actually have the opposite effect.

- If it is in the big cities that the high-productive future jobs exist and you put them in order by taxing them too much, then people risk choosing such jobs. Then we will still have less resources in the future, says Magnus Henrekson.