Letter to the editor. Follow Finland and abolish the interest deduction step by step

In case of a hearing in Current (20/5) About phasing out interest deductions for home loans claimed responsible Minister Niklas Wykman (M) like an automatic answering machine repeatedly that it would mean a tax increase of 1,000, 2,000, SEK 3,000 or SEK 4,000 a month for a mortgage borrower with SEK 2 million in debt.

The mortgage borrowers who have SEK 2 million in debt at an interest rate of 4 percent each year pay SEK 80,000 in interest. Following the state -subsidized interest deduction by 30 percent, the cost drops by SEK 24,000 to SEK 56,000, which is still a considerable amount.

Completely removing the interest deduction directly would not be sustainable, but perhaps an initial phase -out with one percentage point per year would work. Just copy Finland, where one is worrying out the interest deduction gradually over a ten -year period.

With 29 percent deduction For the above loan, the interest deduction « only » would be SEK 23,200, which corresponds to an increase in the interest cost by SEK 800 per year or SEK 67 per month. Is it these tax increases that Niklas Wykman talks about?

Now I want to encourage Mr Wykman to go through my calculations and check if borrowers really have to refrain as ironically as a loose number of a daily newspaper a month and maybe two each other to cope with an initial phase -out of interest deductions?

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