Sweden cuts taxes because it needs growth
After a generation and more of economic strangulation at the hands of the welfare state, Sweden is cutting income taxes to stimulate growth.
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. ...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.