Ever wonder where your taxes go? Sweden’s expenses run to about 990 billion kronor a year (this, and following numbers, are courtesy of the Finance Department at regeringen.se). The largest expense, 111 billion, goes out to the municipalities who use it for their expenses. Economic help for families and children, people who are sick and people with disabilities together comes to about 194 billion kronor. As far as expense posts go, defense comes in 8th at about 54 billion kronor, just after (and less than) Communications and telecommunications. It’s sobering at this moment to consider the state of Sweden’s train infrastructure, or the security of our digital networks, the main components of Communications, and then think that Sweden’s armed forces receive less.
The additional 20 billion kronor going to the Department for Defence, that the government and its support parties have agreed upon, is a welcome shot in the arm. But it is not exactly clear where the money is going to come from. The hot rumour is a new bank tax, something the Left Party has been pushing for quite a while – they wanted the revenue to go to health care not the military, but apparently “whatever”. Left Party economic spokesperson Ulla Andersson was openly amused that “their” tax was now going to become reality thanks to the traditionally tax-unfriendly Center and Liberal parties.
The Moderate party spokesperson, Elisabeth Svantesson, was more critical, meaning that higher taxes, on banks or otherwise, shouldn’t be the very first measure taken when expenses rise. Instead, she says, the Green Party’s “free year” and/or the Social Democrat’s “family week” could be cut instead. The Christian Democrats, on the other hand, are reserving judgement. They have previously even suggested a bank tax, but one that is based on taxing banks’ risk-taking products and ventures and not just taxing the entire business ().
What they mean by that and how that would actually work is anyone’s guess. What is certain, although no one in the government is saying it, is that however the tax is formed, banks will pass on the expense to their customers (. Banks made approximately 100 billion kronor last year (compare to budget numbers in first paragraph) which makes them an easy target for ire and jealousy. Although one could hope for a more cool-headed approach from our elected representatives, a bank tax sells well to many people. The check, though, will likely eventually land in fewer bank hires, reduced hours, and fewer free bank services, trends that are already in the making.
Taxes are all about paying, whether or not the bank does it first or whether we all do it in a lump sum every May. If it’s going to contribute to making Sweden’s defense more reliable than say, the trains running on time, it could be worth it.