Sweden's government, Left party propose profit cap on tax-funded companies (updated)

AcadeMedia AB

19/01/2018 12:11

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    STOCKHOLM, Jan 19 (Reuters) - Sweden's centre-left 
government and the Left Party will propose capping the profits 
of companies that operate private schools and care homes which 
are funded by taxpayers, they said on Friday.  
     However, the proposal will have little chance of passing 
parliament; the minority government and the Left Party lack the 
necessary votes. All other opposition parties have previously 
vowed to vote against the proposal. 
    Even though the proposal looks dead in the water, it could 
play a role in elections due in September. Many Swedes feel 
taxpayer money is lining the pockets of private investors, and 
the issue is likely to come up during the election campaigns.  
     The proposal would cap operating profit at seven percentage 
points of a company's operating capital, plus the risk-free 
rate, which is the average market rate on government bonds with 
a remaining maturity of at least five years. 
    The government has previously dropped plans to cap profits  
made by tax-funded healthcare companies using the same method 
 urn:newsml:reuters.com:*:nL8N1O30NP. 
 
 (Reporting by Johan Ahlander; Editing by Daniel Dickson, Larry 
King) 
 ((johan.ahlander@thomsonreuters.com; +46 707 211027; Reuters 
Messaging: johan.ahlander.reuters.com@reuters.net)) 
 
Keywords: SWEDEN WELFARE/COMPANIES