Sweden, long an example that the Left has pointed to as a socialist enlightened economic haven, has been running away from socialist progressive ideals. The latest domino to fall is the realization that tax cuts spur on the economy.
Sweden’s centre-right government on Saturday announced income tax cuts of 10 billion kronor to stimulate the job market, its primary objective.
Prime Minister Fredrik Reinfeldt and three other ministers in the four-party coalition said the reduction would mean most wage earners would have 200 to 250 kronor (20 to 25 euros, 29 to 36 dollars) more in take-home pay every month.
The proposal, to be presented to parliament on Monday as part of the 2010 budget bill, is the fourth leg of a tax cut programme introduced in January 2007 to stimulate employment.
The fourth leg would enter into force on January 1, 2010.
With that step, 99 percent of full-time employees will have had their taxes reduced by a total of 1,000 kronor per month, while 75 percent will have had reductions of 1,500 kronor, the government said.
“The coalition government has agreed on reforms for jobs and entrepreneurialism that will increase employment in the long-term. It has to be more profitable to work and more companies should be able to hire employees,” the government said.
Imagine that; looking at the long-term rather than a quick “stimulus” “fix” for the here-and-now. Not only that, but letting the people keep their money rather than spending their childrens’ is predicted to increase employment in the long-term, in hopes of reducing this:
Since coming to power in late 2006, the government has launched a series of measures aimed at inciting Swedes to return to the job market instead of living off of state subsidies.
The success of public assistance shouldn’t be how many people are on it, but how many no longer need it. That line is not original with me, but it is an idea that the Swedes are coming to grips with.