Economists now claim that reduced taxes do not create more jobs.
By giving more in the wallet when working, the tax cuts would increase the motivation to work for extra low hourly pay, the so-called reservation wage. This would lower wage costs for employers and enable them to hire more.
Magnus Henrekson, professor of economics and CEO of the Institute for Business Research (IFN) believes that this effect has not materialized. Low-educated people have not got more jobs. Instead, students have worked more and these often do not have to pay tax.
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