Moderaterna Unveils Ambitious Tax Reform and Focuses on Integration Ahead of 2025 Election

At their conference in Västerås, Moderaterna is setting its agenda for the 2025 election with a strong focus on economic policy and integration issues. Despite leading the current government, the party has not seen a rise in public support and is addressing voter concerns by targeting high inflation, recession, and high taxes. Finance Minister Elisabeth Svantesson highlighted the need for reducing marginal tax rates, currently exceeding 50%, by proposing broad tax cuts for individuals and businesses, including a new 'jobbavdrag' to replace the existing system. Svantesson stated, "We want to simplify the income tax system and continue to lower taxes for hard-working Swedes." The reform is described by Finance Markets Minister Niklas Wykman as the largest since the 1990s, aimed at making work, study, and entrepreneurship more profitable while simplifying the tax structure. Future tax cuts will be financed by reallocating state spending, including cuts in foreign aid and phasing out interest deductions on personal loans, rather than borrowing.

Meanwhile, Douglas Thor, leader of the Moderate Youth League (MUF), emphasized the urgency of addressing integration and youth employment. MUF proposes that the first 500,000 SEK earned by young people should be tax-free to encourage employment, though Moderaterna has expressed fiscal reservations about this. Thor also introduced new integration policies, such as 'integration zones' and a 'Sweden contract' for newcomers, criticizing government efforts to map immigrants' values as unproductive. He acknowledged the electoral challenges posed by the party's cooperation with the Sverigedemokraterna (SD), noting that many voters are hesitant to support Moderaterna due to this alliance but stressed that the collaboration is essential for improving crime prevention and social services.

As the election approaches, Moderaterna is intensifying efforts to balance economic reforms with pressing social issues to regain voter confidence. Current polls indicate the party is trailing, making these policy initiatives crucial for their electoral success.