An annual salary in a reduced tax for well-off households in Danderyd

The 21st century is the century of wealth, at least so far. Since the turn of the millennium, many property taxes have been abolished, with widely varying government colors. The Social Democrats removed the inheritance and gift tax, the Alliance then removed the property tax, at least how it looked then, and the wealth tax. The fact that the gaps have widened over the last 20 years is no longer news, but how much is it really about?

TT has asked the LO economists to count on the effects in pure kronor and the penny. Households in Danderyd, a residential family in a medium-sized Swedish city, Sundsvall, and the state as a whole have been selected. The figures are based on average valuation values ​​and wealth statistics from Statistics Sweden, calculated in time according to economist Daniel Waldenström's model.

If the taxes had remained as they looked when we entered the 2000s, the Danderydshusholdet, a couple of residents in the villa, would have paid an average of SEK 227,400 more in tax per year than is currently the case. Similarly, the homeowner in Sundsvall has "earned" SEK 5,700.

"These are quite large amounts," says Daniel Waldenström, whose research is focused on the distribution of income and wealth.

The demolished wealth tax corresponds to a total of 140,000 in lower taxes for the Danderyds family, but can also to some extent be said to have been a double property tax since the value of the house imposes on both types of tax.

But regardless, just like many other economists, he strikes a kind of re-introduced property tax as it looked then, unlike today when basically everyone pays the same tax, with a low ceiling.

- Real estate assets are a favorable tax base, it does not affect how much we work. If we are to have high taxes, we must have efficient taxes, says Daniel Waldenström.

Instead, all billions in scrapped capital taxes could have been spent on lower taxes on work, according to Waldenström.

The fact that the property tax in principle disappeared in 2008 can mainly be attributed to the Christian Democrats and the interest organization Villaägarna, according to Waldenström. Because although most economic appraisers pay tribute to the property tax, few politicians, nor Finance Minister Magdalena Andersson (S) have dared to raise the tax again, citing that citizens do not want it. But that is not true, properly designed there is a majority for re-introduced property tax, according to studies according to Daniel Waldenström.

"Much of the reasoning comes from special interests," says Daniel Waldenström, and this also applies to the inherited and gift tax removed, according to him.

The children of the Danderyd household have been able to count home another SEK 3.5 million on the scrapped inheritance tax, a measure that can be discussed from both a fairness perspective and a liberal view that all people should have similar opportunities at the start of life. Even the United States has inheritance tax, argues Waldenström.

The redeployed so-called company tax (3:12 rules) has also benefited the shareholders.

At year-end, the tax on high-income earners is abolished, which means an average of SEK 17,700 in lower tax per year.