MP about to abolish interest deduction – Swedish Dagbladet

Photo: Kiki Nilsson / TT / TT news agency

The question of interest deductions has been hot recently. A range of observers, as the Riksbank, Stefan Ingves, has argued that the deduction, which allows the state loses about 30 billion dollars a year, should be removed.

Minister for Financial per bolund (MP) has been opened up for to revise the interest rate deduction in connection with the Financial Supervisory Authority (FI) informed that they would not proceed with its amortization requirements. The Social Democrats’ attitude is more vague. “We will have interest deductions in the future,” the Prime Minister Stefan Löfven (S) said.

Now, a preparatory committee on the MP Congress added a so-called that statement, in a housing policy bill from the party, that the MP will work for the interest deduction should be removed. Behind it stood a majority of the voting in committee, among other party’s tax political spokesperson Rasmus Ling.

– It is that we think we should have a greater focus on existing housing, not only on new construction, he says to SvD.

The Rasmus Ling believes that Swedish is one of Europe’s most indebted people, and it means a great vulnerability for the economy and for individuals at risk of falling house prices, while being highly leveraged.

– Another reason is pure distribution policy. There are high-income earners who increasingly must take note of this. It also reduces the mobility in the housing market, he said.

How quickly will the interest deduction is phased out?

– I think it will be over time, 20 years so it is 1.5 percentage points per year, in 30 years, it is one percent a year. I think you should land in between. It gives a clear signal, but it may not be so negative consequences for people, says Rasmus Ling.

But it gives a cooling effect at all if you go out so slowly?

– I still think you can get one if you have the direction. People take decisions in maybe ten years time and know that it will go in that direction will be to have a larger margin.

The Left has previously said it wants to reduce interest deductions and the introduction of a requirement for amortization of mortgages. If MP adopts the proposal will therefore, two of the three parties behind the budget that will eliminate the interest deduction.

Rasmus Ling think both S and M has a setting that would be great really, but there is a political locking because the issue is sensitive.

– There is some kind of chicken race. But I think many have the opinion that it would be good to go in that direction. The major parties have not dared really. The hope is to get a little less drama around it, he said.

The party has not gone out with his support for that formulation, reportedly to SvD, but embraces a proposal to revise the tax rules.