No person becomes financially independent with a holding of $25,000

For transparency and my own agenda, I strongly dislike socialism and our previous government, the Social Democrats with the support of the Green Party and the tacit acceptance of the Left Party, who ruled Sweden for 8 years. At the last election, I voted for the current government.

Our current government has put forward a proposal that is being criticized by 2 body considering proposed legislation, the Swedish National Financial Management Authority and the Economic Institute. The proposal involves introducing a tax-free basic level of $25,000 in a savings form named ISK.

Today, 2,500,000 Swedes have an ISK account with a median savings of $6200. If you save $85 a month and manage to get an average return of about 8% per year, you'll have about $28,500 after 15 years of saving.

That the proposed tax-exempt basic level happens to be close to the median annual salary after tax is most likely no coincidence. The goal of the proposal is to promote increased savings and perhaps an attempt to implement a mindset that it should be a goal to try to get an annual salary saved.

Allowing people to have a year's salary saved with money that has already been taxed once in the form of income tax to be able to have a buffer for unforeseen costs should be a non-issue.