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From Bicycles To Washing Machines: Sweden To Give Tax Breaks For Repairs (mnn.com)
jenningsthecat writes: The Swedish government is putting its money where its mouth is when it comes to encouraging the repair of stuff that would otherwise be thrown away, according to both The Guardian and Fast Company. The country's Social Democrat and Green party coalition have submitted proposals to Parliament that would reduce the value-added-tax (VAT) on bicycle, clothing, and shoe repairs from 25% to 12%. Also proposed is an income tax deduction equalling half the labor cost of repairing household appliances. According to The Guardian, "the incentives are part of a shift in government focus from reducing carbon emissions produced domestically to reducing emissions tied to goods produced elsewhere." Per Bolund, Sweden's Minister for Financial Markets and Consumer Affairs, said the policy also tied in with international trends around reduced consumption and crafts, such as the "maker movement" and the sharing economy, both of which have strong followings in Sweden. The VAT cut may create more jobs for immigrants as it could spur the creation of a new home-repairs service industry. Also, from a science standpoint, the incentives could help cut the cost of carbon emissions on the planet as it should in theory reduce emissions linked to consumption. "I believe there is a shift in view in Sweden at the moment. There is an increased knowledge that we need to make our things last longer in order to reduce materials' consumption," Bolund said. The Guardian's report concludes: "The proposals will be presented in parliament as part of the government's budget proposals and if voted through in December will become law from January 1, 2017."
Until you figure out that the tax cut is not to corporations and the rich, but to regular people, and alt-right heads explodes instead.
You are welcome on my lawn.
I'd really like to see what factual basis you're employing for this argument, because I'm not seeing one. In fact, I come to exactly the opposite conclusion, maybe because (a) I live in Sweden, (b) I know what a washing machine costs here, and (c) I can do simple maths.
Washing machine X costs the same regardless of your income. (Yes, if you make more, you can buy a more expensive machine, in which case it's a different machine.)
If I make 100000 SEK a year and spend 10000 of it on that washing machine, that's 10% of my income. If I spend 5000 to repair it, that's 5%. If I get back 2500 of that on my taxes, that's 2.5%.
If I make 200000 SEK a year and spend 10000 of it on a washing machine, that's 5% of my income. If I spend 5000 to repair it, that's 2.5%. If I get back 2500 of that on my taxes, that's 1.25%.
So, if anything, the tax cut actually benefits low-income folks *more* than it does the wealthy since it returns a greater proportion of their income. What's your evidence to the contrary, other than grand pronouncements?
Il n'y a pas de Planet B.
High tax rate but also high return on value to citizens. The US has a very low tax rate but also a very low return back to citizens. What pisses off people is when they pay taxes but get very little to show for it (except a gargantuan military).