S and MP agree on higher income tax – Swedish Dagbladet

S and MP agree on higher income tax – Swedish Dagbladet

– The fact that it was referred in the day, there will be no change January 1, 2015, said Finance Minister Magdalena Andersson (S) said.

MP ran in the election campaign with a proposal to raise the gasoline tax by 70 cents per liter and V has a proposal of 20 cents more per gallon of gasoline.

This is done through a gradual winding down of the earned income tax credit, according to a Swedish radio news. The proposal will be included in the autumn budget and will apply from the 2015th

The agreement is a compromise because S wanted to increase from 60 000 and MP from 40 000.

The increase is expected to increase tax revenues with nearly 2.4 billion 2015 slowdown rate of the earned income tax is 3 percent, which means that those who earn more than 123,000 dollars a month do not get any deduction at all.

The parties have also agreed on lower taxes for retirees with 120 dollars a month. At incomes up to 120 000, there should not be any tax difference between pensioners and wage earners. The so-called tax gap to be removed in stages and be completely gone in 2020.

the abolition of the youth discount for young people under 26 should be halved in 2015 and completely cease at the end of 2015, it is expected to give the treasury income of 9, 6 billion next year and SEK 18.8 billion in 2016, reportedly said.

The tax package also increased tax on natural gravel, pesticides and waste, height effect taxes for nuclear reactors, higher taxes on tobacco, lower tax deductions for private retirement savings, abolishing tax deductions for administrative expenses and partially reinstated payroll tax for people over 65.

All suggestions are proposed to take effect by 2015.

The consequence of S-MP’s proposals if stepped-work tax credit, will be the one who earns SEK 130 000 will have lower marginal tax than earning, say, 110 000 per month.

Council tax, state tax and austerity tax gives a marginal tax rate of about 57 percent (depending on municipal taxes size ) for those earning above the new cut-off point for the earned income tax 123 000 who earns, say, 110 000, a marginal tax rate of 60 percent.

– The person may keep $ 40 for each additional earned hundred, says Johan Fall , tax economist at the Confederation of Swedish Enterprise.

the effect occurs can be easily explained by those who earn between 50 000 to 123 000 to pay back a portion of the earned income tax credit. This makes the marginal tax rate on each additional hundred or higher earned in that range, according to Johan Fall.

With the proposal, it becomes a situation where those who earn much less get an earned income tax than if they earned less. If you work a lot and have really high income so there will be no earned income tax at all, according to Johan Fall.