“Life should be good for the country’s retirees,” said Löfven. “That’s all there is to it” (). With these words, the Prime Minister announced that taxes on pensions are going to be reduced for all retirees with a pension of more than 17,000 kronor a month (retirees with a pension lower than 17000 a month got a tax reduction last year).
Although he made it sound like the most obvious, and easiest, thing in the world to do, if it had been, he would have perhaps done this earlier than five years after having taken power. The Moderate Party’s economic spokesperson Elisabeth Svantesson didn’t waste any time giving her response: “Retirees have gotten tax reductions to the tune of 27 million kronor over the last ten years, and the Moderate Party has been behind 21 of them” (b). It appears everyone is in agreement that reducing taxes on people that can’t exactly go out and get a new job with a better retirement plan is a good idea.
The government also announced raising the basic pension by 200 kronor a month. The basic pension is what is doled out to persons that have no other retirement income, and also to those who have a pension but one that is extremely low. This is a lot of people, people. 675,000 people, according to Expressen. Even the housing supplement is being raised to a maximum of 7000 kronor a month for singles (3500 kronor for a married person).
All in all, the measures announced today will come in at 4.3 billion kronor (). Where exactly the money is coming from, and what might take a hit, remains an awkward question that definitely poisons the punch bowl.
Hold on to your hats, the full budget will be presented on the 18th of September.