Job Tax Deduction

The plan requires that tax levels increase especially on high incomes and large fortunes and that the tax system is designed progressively so that the richest once again pay their share. A job tax reduction that is given in full even at very high incomes goes in the opposite direction, and a phase-out above 45,000 kronor with a reduction above 100,000 is precisely such a progressive design. The job tax reduction is not mentioned by name.

• the richest pay their sharedecisive»skattesystem där de rikaste åter börjar betala sin del.« (party programme ↗)“tax system where the richest once again start paying their share.”
• progressive taxation»de utformas progressivt och används till saker alla har användning av.« (party programme ↗)“they are designed progressively and used for things all have use for.”
• tax according to capacity»Vi vill inte höja skatten för vanliga löntagare utan på mångmiljonarv, lyxvillor och stora aktievinster som man inte ens behöver jobba för.« (2022 manifesto ↗)“We do not want to raise taxes for ordinary wage earners but on multimillionaires, luxury villas, and large stock profits that you don't even have to work for.”
• no tax cuts for a few»Vänsterpartiet tycker att det är viktigare med en arbetstidsförkortning som kommer alla till del än sänkta skatter för ett fåtal.« (2022 manifesto ↗)“The Left Party believes it is more important to have a shortened working week that benefits all than tax cuts for a few.”

The plan's key commitment is that resources for welfare shall increase and that large tax cuts prevent this, and that the very richest shall contribute more through a readiness tax. That the job tax credit is phased out at high incomes and completely disappears above 100,000 kronor per month is consistent with the requirement for progressive taxation according to ability to pay. The job tax credit is not mentioned explicitly, though, which is why the assessment is derived.

• welfare before tax cutsdecisive»Stora skattesänkningar omöjliggör det.« (2022 manifesto ↗)“Large tax cuts prevent it.”
• the richest shall contribute more»Vi vill införa en beredskapsskatt för de allra rikaste.« (2022 manifesto ↗)“We want to introduce a readiness tax for the very richest.”
• progressive taxation»Skatterna ska vara progressiva och tas ut efter bärkraft och« (party programme ↗)“Taxes shall be progressive and levied according to ability to pay and”
• resources for welfare»En avgörande fråga i höstens val är om vi ska fortsätta öka resurserna till välfärden, eller om stora skattesänkningar ska gå före.« (2022 manifesto ↗)“A decisive question in this autumn's election is whether we should continue to increase resources for welfare, or whether large tax cuts should come first.”

The plan takes no explicit position on what the committee actually decided — often because the committee's reason was procedural. The stance is derived and fully cited, but it does not show the party broke a commitment.

The election manifesto asserts that those who are well-off shall contribute more than those with small margins and that those with most money shall contribute more to welfare, while those with least resources shall have lower tax. The party programme wishes to reduce economic inequalities. That the earned income tax deduction is phased out at high incomes and is absent above one hundred thousand per month follows directly from this.

• progressive distributiondecisive»Den som har det gott ställt ska bidra mer än den som har små marginaler.« (2022 manifesto ↗)“Those who are well-off shall contribute more than those with small margins.”
• high earners contribute more»att de med mest pengar, som också orsakar större utsläpp, ska bidra mer till omställningen och välfärden genom en progressiv beskattning av kapital.« (2022 manifesto ↗)“that those with most money, who also cause greater emissions, shall contribute more to the transition and welfare through progressive taxation of capital.”
• sustainability principle in taxation»Det är rimligt att den som har det gott ställt ekonomiskt bidrar mer till det gemensamma trygghetssystemet än den som har ett mindre ekonomiskt utrymme.« (party programme ↗)“It is reasonable that those who are well-off economically contribute more to the common security system than those with less economic scope.”
• reduced inequalities»De ekonomiska klyftorna ska minska.« (party programme ↗)“Economic inequalities shall decrease.”

The stance rests on the quoted commitment in the party's own documents; the actual vote deviated. Click the quote to verify it in the document.

The election manifesto states that total tax pressure must come down and that the party will not participate in tax increases that damage jobs or personal savings. Phasing out and eliminating the earned income tax credit at higher incomes is precisely such an increase in tax on work. The party programme also wants to make the tax scale less steep so that it does not penalize effort.

• no tax increases on jobsdecisive»Det totala skattetrycket måste ner nästa mandatperiod. Vi kommer inte att medverka till några skattehöjningar som skadar jobben, det egna sparandet eller gör det dyrare att bo.« (2022 manifesto ↗)“Total tax pressure must come down next term. We will not participate in any tax increases that damage jobs, personal savings or make housing more expensive.”
• less steep tax scale»Därför måste skatteskalan göras mindre brant« (party programme ↗)“Therefore, the tax scale must be made less steep”
• lower tax on work»Därför vill vi sänka skatten, särskilt för dem med lägre inkomster och för de viktiga småföretagen.« (2022 manifesto ↗)“Therefore, we want to lower taxes, especially for those with lower incomes and for important small businesses.”
• low tax on job creation»Skattebördan på jobbskapande i företag ska göras så liten som möjligt.« (party programme ↗)“The tax burden on job creation in business should be as small as possible.”

The plan requires a new broad earned income tax credit and that marginal tax rates for everyone continue to decrease, with the highest marginal rates closer to the OECD average. The counter-proposal's demand to phase out the deduction at high incomes and completely remove it above 100,000 kronor per month raises the marginal tax rate precisely and therefore contradicts the plan. The plan also wants to abolish the surtax and raise the threshold.

• broad earned income tax creditdecisive»För att stärka arbetslinjen och hushållens ekonomi i ett oroligt ekonomiskt läge vill vi skyndsamt genomföra ett nytt brett jobbskatteavdrag.« (2022 manifesto ↗)“To strengthen the work line and household finances in an uncertain economic situation we want to quickly implement a new broad earned income tax credit.”
• reduced marginal tax rates for all»marginalskatterna för alla fortsätter att minska« (2022 manifesto ↗)“marginal tax rates for everyone continue to decrease”
• lower top marginal tax rate»De högsta marginalskatterna bör närma sig snittet i OECD.« (party programme ↗)“The highest marginal tax rates should approach the OECD average.”
• abolished surtax»Därför ska både värnskatten avskaffas,« (party programme ↗)“Therefore both the surtax shall be abolished,”

The plan establishes that the tax system shall be designed so that the individual to the greatest possible extent retains their own wages, that taxation shall be designed so that work is favoured and that the system shall stimulate work and enterprise. A phase-out that completely removes the earned income tax credit for high incomes goes against this, although the plan also mentions that taxes shall mitigate income dispersion.

• retain own wagesdecisive»Skattesystemet ska vara utformat så att den enskilde i största möjliga utsträckning får behålla sin egen« (party programme ↗)“The tax system shall be designed so that the individual to the greatest possible extent retains their own”
• work shall be favoured»Beskattningen ska utformas så att arbete gynnas« (party programme ↗)“Taxation shall be designed so that work is favoured”
• taxes that stimulate work»Det bör också utformas så att det stimulerar arbete, hederlighet, sparande och företagande.« (party programme ↗)“It should also be designed so that it stimulates work, integrity, savings and enterprise.”
• mitigate income dispersion»styra den ekonomiska utvecklingen i en social och ekologisk riktning samt mildra inkomstspridningen« (party programme ↗)“steer economic development in a social and ecological direction and mitigate income dispersion”

The plan commits to lowering taxes on work so that effort pays off better and to introducing a tax freeze where aggregate taxes are not raised. It also states that the tax burden is already among the world's highest and that more tax is no solution. A phasing down of the job tax credit at higher incomes is in substance a tax increase on work and therefore conflicts with the plan.

• lower taxes on workdecisive»Sänka skatten på arbete så att din ansträngning lönar sig bättre« (2022 manifesto ↗)“Lower taxes on work so that your effort pays off better”
• tax freeze»Införa ett skattehöjarstopp under den kommande mandatperioden som innebär att de samlade skatterna inte höjs« (2022 manifesto ↗)“Introduce a tax freeze for the coming term which means that aggregate taxes are not raised”
• no higher taxes(2022 manifesto)
• work line in the tax system»Skatter och bidragssystem ska utgå från arbetslinjen.« (party programme ↗)“Taxes and benefit systems shall be based on the work line.”

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The plan's tax line is that it shall become more profitable to work and that tax take shall not undermine incentives to contribute to growth. A job tax credit that is phased out and completely disappears at high incomes goes in the opposite direction and is the type of far-reaching redistribution policy the party programme warns against. The levels of the phase-out are not addressed in the documents.

• work shall paydecisive»Göra det mer lönsamt att arbeta« (2022 manifesto ↗)“Make it more profitable to work”
• preserved work incentives»undanröjer incitamenten för att vilja bidra till den ekonomiska tillväxten« (party programme ↗)“undermines incentives to want to contribute to economic growth”
• education and risk shall pay»måste det löna sig att utbilda sig, arbeta och ta risker« (party programme ↗)“it must pay to educate oneself, work, and take risks”