The government Alliance has introduced tax reductions for services in Swedish households; for instance cleaning services and home renovations, in a move to facilitate lives of families where both parents work. The Social Democrats have opposed this. Why should we have these tax reductions — or why should we not have them?
These tax reductions have created approximately 5,500 new jobs in the important service sector and make dreams come true for thousands of people that used to be distanced from the labor market. As a workers’ party we love all jobs. This symbolic political conflict between the government Alliance and the Red-Green block summarizes what this general election is all about: moving forward with more jobs or moving back to unemployment.
The Moderate Party describes the reforms thus: “Many new jobs are now being created through tax deductions on buying certain services carried out at home, such as cleaning and child minding. This creates real jobs, instead of people buying services that they do not pay tax on. It also results in new businesses being started. The job market will become more flexible and stimulated if female entrepreneurs are given better opportunities within areas such as caring. We also want the “ROT” allowance to remain, whereby tax relief is granted for carrying out work such as home repairs and improvements. This creates more jobs in the building industry.”
Anyone opposing these tax reductions simply cannot call themselves a workers’ party, because the alternative is the same jobs but without the users paying taxes on them. Sweden already has one of the world’s highest tax rates and we’re proud of our welfare system – but we need tax reductions in order to make it more profitable to work and pay taxes for services.
