“The debate on the need for a strong state and the implementation of a temporary tax increase has gained traction in Sweden in recent weeks. Heike Erkers and Simon Vinge, representing the Association of Academicians SSR, are advocating for a contingency tax in the next budget to address crucial national issues.
Gang violence has become a pressing concern, as has the need for increased defense funding without negatively impacting welfare. In light of these challenges, Erkers and Vinge argue that a temporary tax increase is necessary. They emphasize that preventing gang violence is more cost-effective than the heavy police response required after every shooting. Additionally, they assert that significant expansion of Swedish defense is vital as the country prepares for potential NATO membership.
The advocates assert that the public is supportive of temporary tax hikes, particularly if the funds are earmarked for addressing pressing national issues. An opinion poll commissioned by the Academic Union SSR indicates that half of Swedes are willing to see higher taxes for those with an annual income of over one million. Furthermore, there is strong support among the Swedish population for a temporary tax increase to finance defense without compromising welfare.
Erkers and Vinge’s proposal is that high-income earners with over a million in annual income should bear the brunt of the contingency tax. They argue that this group has benefitted from significantly reduced taxes in modern times and that a tax increase for this bracket would yield the necessary funds.
The timing of this proposal is seen as critical, given the challenges facing welfare, Sweden’s preparedness for NATO membership, and the climate crisis. The trade union is urging politicians to consider their members’ needs and the sentiments of the wider public when making budgetary decisions.
In conclusion, Erkers and Vinge contend that a temporary tax increase is imperative for Sweden to effectively address gang violence, increase defense funding, and ensure that welfare is not adversely affected. Their proposal and the accompanying supporting data demonstrate that the public is receptive to this initiative.”
By Heike Erkers, chairman of the Association of Academicians SSR
Simon Vinge, chief economist Academic Association SSR