Response to interpellation 2025/26:433 on a broad tax review
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
1 M considers it fair that hard-working people do not pay more than necessary in taxes and that it should pay to work 1. M considers that the tax on labor and capital should be more even and that the very wealthiest should contribute more 2. M considers that taxes are central to financing defense, the justice system, and welfare 3. M never wants to levy higher taxes than what is required and wants taxes that reward and lift Swedish companies 3. M argues that it is important to lower the tax for everyone who works 4. 2 S wants to implement a tax reform to create fairness and limit aggressive tax planning 2 5. 5 S considers that the government has not done enough to combat tax fraud and undeclared work 5.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Finansministern Elisabeth Svantesson (M)
Mr. Speaker! Ida Ekeroth Clausson has asked me how I intend to ensure that the tax system is perceived as legitimate and fair by broad groups in society.
The Government considers it fair that hardworking people should not pay more than necessary in tax. It should pay to work. The Government has therefore, three times during the mandate period, lowered the tax for everyone who works, with a focus on low and medium-low incomes. The tax on pensions has been lowered to the same extent.
Everyone has received more in their wallet with the government's policy. An ordinary family with a police officer and a nurse has received 5,000 kronor more in their wallet every month in 2026 compared to 2022. A single healthcare assistant with two children and a cohabiting retired couple have in the same way received 3,200 and 2,300 kronor more in their wallet per month, respectively. Overall, the government's policy is judged to have the greatest positive effect for those with the lowest incomes.
For the legitimacy of the tax system, it is also important that taxes are collected in a legally secure and predictable manner and do not disappear into fraud and crime. The Government is actively working to counter tax fraud, tax crimes, and crime in the labor market. During the mandate period, we have tightened control systems, improved agency cooperation, and closed loopholes in the welfare systems to stop the criminal economy.
Ida Ekeroth Clausson (S)
Mr. Speaker! I thank the Minister for the answer, which perhaps did not offer any direct surprises.
"Taxes and fees have been the instruments with which we have been able to transform our country from a society of privilege into a welfare state – built on the principles of solidarity and community." This is to be read in a Social Democratic parliamentary motion by Olof Palme, Lena Hjelm-Wallén, Ingvar Carlsson and others from 1978, and it applies to this day.
There is a great need for a thorough review of the tax system. Sweden is in a growing debate about the tax system's legitimacy, efficiency, and distribution. Despite the fact that earned income is taxed relatively heavily, there are significant differences in how income from work and capital are taxed. This can undermine confidence in the tax system and, in the long run, the social contract.
Currently, persons with large capital incomes can, in some cases, pay much lower taxes than ordinary wage earners. Furthermore, there are known ways to further reduce the effective taxation through tax planning. At the same time, Sweden has become one of the countries in the world with the most billionaires per capita, while economic inequalities are growing. Research shows that growing inequalities can undermine social cohesion and the willingness to contribute to the common good. When the tax system is perceived as inadequate, the legitimacy of central welfare institutions is also threatened.
We Social Democrats want to implement a tax reform that creates predictability and fairness and that is based on broad tax bases. The basic principles for the review are that the differences in taxation of labor and capital shall be addressed and that the very wealthiest shall contribute more. In addition to broadening the tax base, we want to increase the tax on large, low-taxed capital incomes, simplify the system and make it more uniform, and limit the possibilities for tax evasion and aggressive tax planning.
The abolition of a number of taxes as well as the large reductions in income tax have led to those with the highest incomes paying lower tax. Capital income has increased significantly, and many with high capital income benefit from extensive exemptions from ordinary capital taxation. The distribution of capital income is very uneven compared to other types of income. I would therefore like to ask the Minister for Finance why she thinks it is reasonable that a cashier pays a larger proportion of her salary in tax than the owner of the business chain does.
Finansministern Elisabeth Svantesson (M)
Mr. Speaker! I thank Ida Ekeroth Clausson for the interpellation, which is relevant to say the least. Taxes are in some way the heart of politics. With taxes at the right level, we can finance what we need to do together, and with taxes, we can steer and influence behaviors and drivers. It is enormously important. On the other hand, perhaps we are not entirely in agreement on what needs to be done. I will briefly explain how I think about this matter.
As the person responsible for all taxation in Sweden, I have two questions that I think about a lot. One of them concerns the long-term. How are we to make the Swedish economy grow and become even larger, so that future welfare, defense, justice system, school, and elderly care can remain as good as they are now and preferably become better during the coming years? We must be a wealthy country that can do everything that is required. Sweden shall be a really great country to live in, which it also is in many ways.
The second question for me when it comes to taxes concerns fairness. The interpellor is also touching on that question. My perspective is that it should become more fair. It should simply pay off more to make an effort. When one makes an effort in school or at work, and when one starts a company and works, it should be profitable. It should be compared with when one, for example, does not do everything one can to be hired or does not put 100 percent of one's own energy and strength into entering the labor market.
When a family with several children and unemployed parents has approximately the same income as a family in the same stairwell where the parents work, it is not fair in my view. Justice, for me, is about ensuring that those who work and make an effort feel that it pays off. I share the view that there is a difference in the taxation of capital versus labor. But I conclude that the tax on labor needs to be lowered more in order to achieve a fairer, more even, and better tax system.
It is my basic position. Our tax system should be such that people living in Sweden feel that they contribute and do everything they can for society to function, and then trust that higher taxes than what is required for this are not taken. The tax system should make the economy grow, and it must have legitimacy.
I know that the Social Democrats like to talk about taxes and want agreements, for example when it comes to the financing of the defense. The reason why I still give the Social Democrats a cold shoulder in that part is that what the Social Democrats desire is help with raising a lot of taxes in Sweden. That is not the path I believe we should take. Sweden now has the lowest tax burden in 50 years. At the same time, just as I said, we have strengthened families and strengthened many people's finances in a very tough time. We also have a fantastic business sector, an innovative environment and a good capital market, which means that Swedish companies actually receive more capital than many others in Europe – also because we Swedes are active in investing and saving in funds and stocks.
Ida Ekeroth Clausson (S)
Mr. Speaker! The Minister spoke a lot about the importance of making an effort and working. I stand behind that. I think, however, that it is unfortunate that more has not been done to lower unemployment. I will return to that later in my speech.
The Minister also mentioned in his answer that a legitimate tax system requires that taxes are collected in a legally secure and predictable manner and without disappearing into fraud and crime. I truly agree with that.
However, I do not believe that the government has taken sufficient measures to combat tax evasion, tax crimes, and crime in the working life.
In the report from the Expert Group on Public Economics, ESO, the size of the criminal economy is estimated at 350 billion kronor, of which 64 percent are judged to be a part of the black economy. It is an enormous sum. It is obvious that the efforts against the black economy and undeclared work must be strengthened.
Labor incomes that are withheld from taxation constitute a serious societal problem, and the consequences of a lack of measures are devastating. State revenues decrease, serious companies risk being squeezed out, and workers are exploited.
This is happening while the government's policy has consistently favored the wealthy at the expense of ordinary citizens, which is noticeable in society through longer healthcare queues, fewer teachers, and a reduced state presence.
We Social Democrats proposed to allocate an additional 75 million to the Swedish Tax Agency to increase controls, but the government rejects this. One can ask why.
The Swedish National Audit Office has shown in an audit that the renovation deduction has had a significant impact on reducing the demand for black market craft services among households. That is good.
But even though households perceive the ROT services as white, black wages have still been paid out in one or more stages behind the consumer link. Here, they do not want to do anything, such as reducing how many stages it may be. The National Audit Office judged that additional measures are required beyond the ROT deduction to combat that type of black labor.
The widespread occurrence of undeclared work makes it difficult for the Swedish Tax Agency to maintain a reasonable level of control. The need for additional measures indicates that there is a potential to improve the Swedish Tax Agency's ability to counter undeclared work.
The Minister also mentioned tax evasion. At the same time, we see that tax money disappears to venture capital companies instead of going to children in school, and that amounts of many billions every year disappear through tax avoidance and tax evasion.
Counteracting tax evasion and tax avoidance must be a priority. There are several reasons for this. One is that it is a moral issue. Another is that it is important for tax morale to counteract tax fraud.
We consider it unreasonable that very wealthy Swedes and Swedish companies can pay a lower share of tax than the nursing assistant or the small business owner through aggressive tax planning. I am sure that these small business owners and nursing assistants with several efforts, as the Minister spoke about it being important to do.
We Social Democrats want to significantly tighten the rules regarding complicity in tax evasion and aggressive tax planning. There is much that the government could do in the tax area for a more legitimate and fair tax system.
A government that had put the Swedish economy before internal party interests would have used the tax money where it did the most good: for families with children, pensioners and single parents, in healthcare, school or elderly care and for increased housing construction, functioning infrastructure or transport that runs on time.
I therefore want to conclude the speech by asking the Minister: Does the government consider that it has taken sufficient measures to achieve a fair tax system?
Finansministern Elisabeth Svantesson (M)
Mr. Speaker! The short answer to the last question is: We have absolutely done a lot to ensure that the tax system is perceived as more fair. It is about lowering the tax for people who work.
I agree with much of what the interpellor has said. The basic principle is that a tax system should, of course, be legitimate and perceived as fair. We shall work hard, and we do so against tax evasion and fraud. It is one of several sides of working with a tax system.
I had the pleasure of entering the Swedish Riksdag 20 years ago. Since then, if I haven't miscounted, we have implemented ten tax cuts on labor. Some were made during the Alliance years. Some were made in opposition, where I in any case got through two budgets even when the Social Democrats were in power. We were able to lower the tax for ordinary hard-working people. Now in government position, we have done it three more times over three consecutive years.
I would like to say that Sweden is unique in this context if one looks across Europe. We have been able to double the resources for defense. During the first two years, when the regions had a very tough situation, we, for example, allocated large parts of the reform space to supporting welfare. We have also lowered the tax on fuels and lowered taxes on entrepreneurship and on, for example, hiring young people.
I am, above all, proud that hard-working nursing assistants, payroll administrators, and hairdressers have received substantial tax cuts in total since 2006.
Today it seems that many parties would like to talk about their tax cuts. Then we know what happens when certain parties come to power. Then it is tax increases that are in focus because one does not have the ability to solve problems and finance things in other ways.
This is about effort paying off. It also applies to entrepreneurship. We are changing, for example, the 3:12 rules. It is important. We are also lowering, as I said, the cost of employing young people. These are some of the things that are important in this situation.
When it comes to cheating and legitimacy, both rut and rot were fantastic in that sense that there are many who work in the sectors. It is also the case that the view on tax evasion and undeclared work has changed quite radically if one looks back in time to how it was 20 years ago.
Having a system that is legitimate also means that cheating and other things decrease and that the perception of it changes. That being said, there are still many who cheat. The absolute worst is the criminal economy, which the member also touched upon.
The government has worked very hard on many fronts since day one. It is also about tax money. Not everything that the economy generates is tax money, but a very large amount is. It is about milking the welfare system in different ways.
Here we have made a rock-solid effort. I remember a few years ago when there was a different government. Then people spoke a lot about the party-junkies as the big villains in the drama. The party-junkies are absolutely involved and financing crime, but it is about so much more and so much more money. It concerns, for example, when you as gangs and groupings use companies as criminal tools and try to enrich yourselves and milk our welfare systems.
It is a task that we are working very hard on. It concerns the census, saving identity with biometric data, and being able to share information between authorities. It should not have taken so long before someone implemented it, but I am very happy that we have addressed that problem.
Summa summarum: Taxes are very central. With taxes, we must ensure that we finance what is needed and what we need to do together. This applies to defense, the justice system, and also welfare.
But we will never levy higher taxes than what is required. The taxes shall also be tailored so that we can even more reward and lift up Swedish companies so that they can grow and can employ even more.
Ida Ekeroth Clausson (S)
Mr. Speaker! Thank you, Minister, for the answer!
Tax should be paid according to ability and welfare distributed according to need. Those who have higher incomes should contribute more than those who have lower incomes, but everyone gets to share in the common welfare. That is what the Swedish welfare model looks like.
Over the weekend, one could read in Dagens Industri that the job tax credit has given the most to those with the highest incomes, partly because the threshold for state income tax has been increased and because the tapering of the job tax credit for high-income earners has been removed.
The newspaper also took up those for whom it has not been as good, such as the unemployed. For a party like the Moderaterna, which claims to defend the work line, it is tricky that they have not done more in government to reduce unemployment.
Today, one in ten Swedes is unemployed. These are people who want to work. Furthermore, there is a 30 percent youth unemployment. I heard the minister himself mention the reduction of the employer contribution for young people. Here, last week, we could hear how a large company instead uses that reduction to increase the company's own profit. That is not a very good prioritization of Swedish tax money.
The high unemployment is not only a betrayal of all those who are without jobs. It is also a waste of Sweden's resources. Sweden needs a policy where we work together towards a higher prosperity.
We can see that the SD government's mandate period has been four lost years for Sweden and the Swedish people. Growth has deteriorated, a record number of companies have gone bankrupt, and the Swedish people are being pressured by ever higher living costs.
It is expensive to be Swedish. At the same time, the SD government has wasted the Swedish people's money and lowered the tax for the very richest with borrowed money.
The result is that Sweden is in a worse situation than we should have been. A government was needed that focuses on ensuring that ordinary people with ordinary wages get it better, instead of lowering taxes for those who already have the most.
Finansministern Elisabeth Svantesson (M)
Mr. Speaker! I shall repeat what the member said, because it was a very good sentence: Common effort leads to increased prosperity.
That is exactly how it is. What has built Sweden strong is that people for decades have worked hard and have been involved and contributed with their own ability. We have flat organizations and do things together. There is an innovative population, and many have dared to invest in companies. Many employees, together with the owners, see to the development of the companies. This leads to prosperity and higher wages. This makes Sweden unique in many ways.
It is however obvious that we choose different paths and different policies. For me, it is important to lower the tax for everyone who works. That I have, as I have said, done in several budgets here in the Riksdag. The Social Democrats can talk about a tax cut, but when they come to power, they are happy to raise the tax, both in the municipalities and at the national level.
This debate perhaps feels a bit like a way to obscure all the tax increases that the Social Democrats are planning for ordinary people. If something is to be financed – there is also a funding gap – you will need to raise taxes on entrepreneurship and work. There is no other way. It would not only be unfortunate but also bad for Swedish growth. We shall continue to facilitate things for Swedish companies and for hard-working Swedish people.
We always have an allocation appendix – previous governments have had it, and so do we. We lower the percentage most for those who earn the least. I have said this many times.
In Sweden, we have progressive taxation. Those who earn more also have a significantly higher tax, not just in kronor but also in percent. I mean that one should still be allowed to keep at least half of what one earns – otherwise, the focus is not really on growth and increased effort.
In this speech, Rashid Farivar (SD) agreed.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.