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Table 9 Formula for the Swedish EITC, by step

From: Women’s and men’s responses to in-work benefits: the influence of children

Earned Income (EI) 0 – 0.91 BA 0.91 BA – 2.72 BA 2.72 BA – 7.00 BA 7.00 BA –
Step 1 (2007) (EI <0.79 BA) (0.79 BA < EI < 2.72 BA) (EI > 2.72 BA)  
  (EI – BD) * LITR (0.79 BA + 0.200 * (EI – 0.79 BA) – BD) * LITR (1.176 PBB – GA) * LITR  
Step 2 (2008) (EI – BD) * LITR (0.91 BA + 0.200 * (EI – 0.91 BA) – BD) * LITR (1.272 BA + 0.033 * (EI – 2.72 BA) – BD) * LITR (1.413 BA – BD) * LITR
Step 3 (2009) (EI – BD) * LITR (0.91 BA + 0.250 * (EI – 0.91 BA) – BD) * LITR (1.363 BA + 0.065 * (EI – 2.72 BA) – BD) * LITR (1.642 BA – BD) * LITR
Step 4 (2010) (EI – BD) * LITR (0.91 BA + 0.304 * (EI – 0.91 BA) – BD) * LITR (1.461 BA + 0.095 * (EI – 2.72 BA) – BD) * LITR (1.868 BA – BD) * LITR
  1. Note: BA basic amount, BD basic deduction, LITR local income tax rate. BA = 40 300 SEK in 2007 (39 700 SEK in 2006, 41 000 SEK in 2008)