Policy. the Christian democrats want to completely ditch the skattegapet between pensioners and wage-earners. It costs about sek 14 billion, any KD want to fund by increasing all vat rates.
tax reduction for pensioners would mean that a person with a pension of 18 000 sek would get 463 sek lower tax in the month.
– the Difference in tax is perceived as unfair and reduces the legitimacy of the tax system and contributes to the differences between different groups in society, ” says KD-leader Ebba Busch Thor.
It was the alliance government which created the gap with their earned income tax credit.
– It was right to introduce the office for budget responsibility (when, however, one can regret that we have not closed the gap faster, ” says the party’s ekonomiskpolitiske spokesperson Jakob Forssmed (KD).
Financing means that the rate of vat at 6% is increased to 7, the on of 12 percent to 13 and 25 percent to 26.
KD are aware of that an increase of vat may have a negative impact on the economy. This could partly be offset by the fact that pensioners receive a higher disposable income. It is also a reasonable financing, because high income earners spend more money, both in dollars and as a percentage of income, on consumption. The exception is the food, where low-income earners use a larger proportion (13 per cent) of their income than high-income earners (11 per cent).
the FACTS
Completely removed the skattegap between pensioners and wage-earners.
A retiree with 18 000 dollars a month gets 463 sek in lower tax per month.
It costs about sek 14 billion.
Financed with an increase of the three vat rates by one percentage point.
Source: KD
TT
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