SWEDEN’S ruling Social Democratic party wants to introduce a “millionaire’s tax” so that the richest contribute more to supporting the welfare system, Finance Minister Magdalena Andersson has disclosed.
The gap between the richest and poorest in Sweden has been growing in recent decades, though the country is still one of the most equal in economic terms in the world.
Writing in daily Dagens Nyheter, Andersson said that while the poorest half of the population had seen their incomes increase 50% since the 1990s, incomes for the top 1% had more than tripled.
“Inequality can raise the risk that authoritarian and populist sentiment can put down roots,” Andersson wrote.
“We are putting forward a number of proposals to lower the income gap in Sweden in the long term. Among other things, we want to introduce a ‘millionaire’s tax’ that will reach those with the most wealth.”
Andersson gave few details of the plan, which was put forward by her party and not the government.
However, she said that the tax should not include real estate and would have a ceiling.
The Social Democrats govern in a minority coalition with the Green Party as a junior partner. The coalition also relies on support from two small, right-of-centre parties and it was not clear whether they or the Green Party would support such a tax.
Sweden’s next general election is due in 2022 and opinion polls indicate that neither the centre-left nor centre-right bloc is likely to win a majority, meaning another broad-based government could emerge which, even if led by the Social Democrats, may not back higher taxes on the wealthy.
