Sweden has bounced back quickly from the global downturn and the economy is set to grow strongly this year. Government finances are the best in Europe, giving the center-right government room to stimulate the economy further.
Outlining the tax cuts, Reinfeldt said there would be fewer people in work and more on welfare if the opposition were elected, leading to tax hikes in a nation with one of the world's highest tax burdens.
"We chose instead to cut taxes for normal people who work," Reinfeldt said, adding 6.1 million workers and pensioners would benefit from the proposals.
The tax cuts have yet to be agreed by the junior parties in the coalition government. Reinfeldt and Finance Minister Anders Borg were also clear that the measures would only come when government coffers were back in the black, probably in 2012.
"We are not going to cut taxes if it puts public finances at risk," Borg told reporters from the deck of a boat in Stockholm's harbor.
The four-party 'Alliance' coalition ousted the Social Democrats in 2006 promising to create more jobs while preserving Sweden's much cherished welfare state.
The government has cut income taxes by around 75 billion crowns since then, but the promised increase in employment has not materialized, due mainly to the global downturn.
However, joblessness is now falling faster than expected and other indicators point to a rapid economic recovery. Consumer confidence is at a 10-year high.
The central bank expects the economy to expand by 3.8 percent this year before slowing slightly and the opposition is struggling to find a stick to beat the government with.
The latest poll shows the government ahead of the opposition coalition after trailing for much of the last four years.
Analysts say the election is too close to call, partly because smaller parties in both the ruling and opposition coalitions are close to dropping below the four percent hurdle needed to get seats in parliament.
Ahead of the election, the Alliance has promised more welfare spending and privatizations but has been cautious about further tax cuts, except for pensioners.
The government has already promised to cut taxes for pensioners by 5 billion crowns if it wins the election and the new proposal would increase this to around 10 billion crowns.
In addition, the center-right alliance has said it would put an extra 9.2 billion crowns ($1.22 billion) in total into local government and the education system between 2010 and 2014.
The Social Democrat-led opposition has promised more spending on welfare, balanced by tax rises.
Social Democrat leader Mona Sahlin, head of the biggest opposition party, will give an election speech on Sunday.
