The actual municipal tax is, for the dominant groups of wage earners, significantly lower today than in 1992. The lack of knowledge about the deduction of the deduction of the employment tax still dominates the debate on municipal taxation.
Photograph: Peter Ottosson
Älmhult raised the tax to most Swedish municipalities. However, due to tax deductions for work, most employees received a lower income tax.
The maps published by Professor Charlotte Mellander of the International Business School in Jönköping speak their clear language. The tax that was high in 1992 is currently the norm of Swedish municipalities. Tax rates are slowly rising to new levels. And, at the same time, the differences in extradition increase. The municipality of Vellinge has a deduction which is six lower crowns than Dorotea.
The image is true and correct. But that does not say everything at the same time. On the contrary, the municipal tax exemption for the large group of wage earners is lower today than in 1992.
Take Älmhult as mentioned when the Ekored action reports the research. There, the municipal tax increased more in the country during the period. From 29.29 to 32.96 crowns per breed of dog gained.
Although the municipal tax in 1992 was 29%, the wage earner with income of 26,000 kronor in the present month has a real income tax of 23.4%. For low- and middle-income earners in Sweden, income taxes are therefore considerably lower today than in 1992.
This fact seems to be lacking in every debate, which deals with the increase of municipal taxes, regional tax differences and the impact on the working environment of taxes. The tax deduction for work introduced by the Alliance's government has a very large impact on income tax and thus leads to the fact that the taxation of large groups in the labor market is around 25%.
As the income tax deduction increases with municipal taxes, it is also much higher in municipalities with higher taxes than in municipalities (bourgeois) with reduced tax. Even those who earn SEK 26,000 in Dorotea, where the tax is SEK 35, pay 25% tax!
The downside of this system is that government spending increases. There is no pressure on municipalities to withhold tax increases because they are largely paid by the state and thus ultimately causes the state to receive higher expenses. This should be collected by other taxes. A lower tax reduction, on the other hand, leads to a reduction in the tax deduction.
Citizens, workers, come under this system more difficult to assess the link between municipal taxes and, for example, welfare. They never see more than in the statement the actual tax rate, but pay a much lower tax to the county.
In addition, the labor tax deduction acts as an additional equalization system. One can also object to the fact that the residents of the higher income counties pay lower taxes than their chosen leadership decides.
The tax deduction system of employment has also made working for low-wage groups really lucrative. It also reduced the marginal tax of low income and reduced the regional differentiation of tax exemptions. For medical leave, parents and the unemployed, higher municipal taxes are a growing problem, which is rarely discussed – because they do not have a deduction from the labor tax and pay significantly higher taxes. During the red-green government government year, more and more people had to pay the state income tax already in effect at SEK 38,000 per month.
But the perception that local taxes are astronomical also counterbalances targets such as increased employment and social welfare. Those for whom work tax deductions are projected – unemployed to be stimulated to work – are the least aware of their occurrence. In this perspective, it is less fortunate that employees believe that they have a municipal tax of SEK 32, when they actually pay 25.