Small businesses should be supported, not penalised

Swedish small businesses - from the self-employed up to 10-20 employees - are too often left in the political backwater. Almost no-one, apart from the Federation of Small Businesses, highlights their circumstances and problems - the smallest businesses are simply taken for granted.

The Ambition Sverige party wants to change this by specifically prioritising improvements to small business conditions in its economic policy. After all, it is small businesses that hire the most new workers of all business categories, which should be particularly important in these days of both high unemployment and the rapid rise of AI.

Sweden already has high unemployment, which entails high public costs in the form of welfare benefits. So far, there are no effective measures that clearly reduce unemployment.

In addition, many companies are starting to plan for the introduction of AI as a cost efficiency measure in their operations. In the near future, many administrative positions in both the private and public sectors will be replaced by AI - positions that will require new employment.

The Ambition Sverige party believes that one of the most important measures to counteract increased unemployment is to make it easier for small businesses to hire new employees. What prevents companies today is the high employer's contribution. Reduce the employer's contribution by removing the general payroll tax, which is a pure punitive tax on companies for having employees. If the general payroll tax is removed, the employer's contribution will be reduced by 11.62 percentage points to 19.80 per cent instead of the current 31.42 per cent.

The abolition of the general payroll tax gives companies extra room to hire new employees. It also provides the opportunity to raise the wages of those already employed. Both circumstances have a positive tax effect for society, in the form of increased income tax and increased consumption.

As a first step, the general payroll tax can for the first five (5) employees of the companies is removed. This makes it easier for small businesses in particular to hire more employees. This limits the immediate tax loss and the dynamic effects, in the form of more employees and their increased consumption, begin to have a positive effect before the next step in the phase-out is implemented.

Many small businesses are barely making a profit. With the removal of the general payroll tax for the first five employees, a company with a turnover of SEK 15 million and an average monthly salary of SEK 37,000 would have its annual payroll costs reduced by SEK 257,964, thereby increasing the company's profit margin by +1.7 per cent - which would be both much needed and necessary.

It is curious that no other parties seems to care about small businesses and their future. It is particularly odd that the centre-right government is instead considering raising the general payroll tax from 11.62% to 12.62% from 2026, as Taxpayers recently noted. This would be a step in the wrong direction, when Sweden needs to create more jobs.

Swedish economic growth and welfare are far too important to be neglected. Swedish economic policy must focus on the right political measures to reduce unemployment and thus secure welfare. Ambition Sverige agrees with Småföretagarna that the removal of the general payroll tax from employer contributions is a priority measure. It would be both necessary and gratifying if any other political party wanted to do the same - for the sake of Sweden!

Micael Hamberg, economic spokesperson

Bo Hansson, pension policy spokesperson