Wanja Lundby-Wedin comments on the government’s budget bill for 2010

Tax cuts for the well-off and increased unemployment – these are the conclusions we can make as regards the government’s policy, Wanja Lundby-Wedin states, when commenting on the government’s budget bill for 2010. Despite the fact that unemployment is increasing, the government continues to prioritise tax cuts instead of an efficient policy to combat the crisis.
In the prevailing situation the government should pursue a broader economic policy in order to improve the low rate of domestic demand. In addition, investments in the unemployment insurance scheme would be more productive than further tax cuts, Wanja Lundby-Wedin says.

We would also need an increase in training schemes for the unemployed and an adult education initiative to provide those out of work with further training, thereby preventing their isolation from the labour market. More priority should also be given by the government to investments in infrastructure in need of repair.

The costs of further reducing the income taxes will amount to 10 billion SEK and, together with the previous cuts of the income tax, the total cost will be 72 billion SEK. These tax cuts have mainly benefited the half of the population with the biggest income.

As a result of the government’s policy there are today fewer jobs in Sweden, increased gaps and a less efficient labour market. Unfortunately, this budget bill shows that the government continues to pursue a policy in the same direction, Wanja Lundby-Wedin says.