Moderate Party: We want tax cuts for the elderly

Roughly one-third of Sweden’s voters have reached retirement age. Living standards differ considerably among the elderly. What needs to be done to improve life for everyone in this group? 

We need to create more jobs in order to finance ambitious reforms for elderly care and health care in Sweden – because these needs will increase as the population gets older and older. It is only with more jobs that we can afford high quality services in the public sector as the demand grows. The Moderate Party and the Alliance also want to cut taxes for the elderly because individuals’ economic margins are currently too small for too many people.

The difference between the Alliance and the Red-Green coalition in this issue is that we don’t go as far as the Red-Greens with tax cuts for the elderly, because we have different priorities with the limited budget for reforms. We realize that a tax cut for those who work and contribute to Swedish welfare strengthens the public finances – thus creating more opportunities for the elderly. We also want to increase the freedom to choose for the elderly.

The Moderate Party loves all jobs

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.

Our taxes should go to the welfare sector

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?

Services in Swedish households are important, especially for the elderly and families with small children.

However, we don’t think that it should be financed by a tax reduction. It provides very few jobs. The result of the conservative government’s politics is that today we have 25,000 fewer jobs within our welfare sector. We believe that our taxes, instead of this tax reduction, should be invested there – in the welfare sector we all share. Today, we all pay for the tax reduction but it is mainly used by people with high incomes.

Full-time employment should be a right

How should Sweden’s active labor market policy be developed?

A job gives you more than food on the table. It gives you self-confidence, workmates and the chance to help shape the way in which our society is built. That’s why everybody’s right to work is the most important issue of all for us, the Social Democrats. And that’s why everyone working in Sweden must be subject to the same conditions.

We want to make full-time employment a right and part-time employment a possibility. We want to create better chances of finding permanent employment and want to raise the unemployment benefit ceiling so that almost everyone will be able to receive 80 percent of their previous wage in the event of unemployment.

We must work our way out of the crisis

How should Sweden’s active labor market policy be developed?

Sweden’s active labor market policy must continue to lower taxes on low incomes in order to make it more profitable to work. We must also lower the costs of employing people and stop the Red Green Coalition’s proposal to double the costs to employ anyone under 26 years. The financial crisis has affected the whole world. It is important to ensure that the effects of the crisis are minimized, and that we create opportunities for more jobs being available in the future. When market conditions improve, the conditions for creating new jobs must be as good as possible.

The Moderate Party and the Alliance also want the “ROT” and “RUT” allowances to remain, whereby tax relief is granted for carrying out work such as home repairs, cleaning and improvements. This creates more jobs in the important service sector and in the building industry. Matching between employers and those looking for work must also become easier by cutting administration in order to create a more efficient labor market.

I am also very proud of the “new start jobs” for those who have been unemployed for a long time or who have been really far away from the job market. By compensating the employer for employing someone who has been absent from the labor market for a longer period of time, more and more real jobs can be created for those in need. The Social Democrats and The Red Green Coalition want to increase taxes on low and ordinary incomes, make it less profitable to work, raise costs of employing and return to Sweden’s old system where people were hidden in meaningless education programs instead of earning their own money on the labor market. That is why The Alliance also has changed the measure instruments of Swedish labor market and harmonized it to EU standard where people who wants to work but instead is put into education also counts as unemployed.

These reforms must continue the four coming years. The Moderate Party’s ambition is to put Sweden in work and continue to take a great responsibility for public finances by not promising everything to everyone all the time. We need to work our way out of the crisis and together make Sweden a pioneer country.