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As an American, I'm interested in knowing why it would require Sweden to raise taxes. Since you mentioned a huge public sector, is it a case of needing extra wo
by xlm1717 11y ago
As an American, I'm interested in knowing why it would require Sweden to raise taxes. Since you mentioned a huge public sector, is it a case of needing extra workers to work shifts so that pubic services are run at the usual hours?
I imagine private companies would be able to get away with it, as long as all their competitors also switch to six-hour workdays.
- jontro 11y agoFrom just a quick googling around I've seen estimated costs for a 30 hour work-week the public budget between 86 [1] - 236 [2] billion SEK/year. The total budget last year year was 862 billion. Somewhere that money has to come from Some Swedish links about it: [1]: http://www.etc.se/inrikes/sa-tycker-oppositionen-om-sextimmarsdagen http://www.etc.se/inrikes/sa-tycker-oppositionen-om-sextimma... [2]: http://www.expressen.se/nyheter/val2014/sa-mycket-kostar-fis-forslag-att-genomfora/ http://www.expressen.se/nyheter/val2014/sa-mycket-kostar-fis...
- jontro 11y agoHere's some more facts about the public sector. Translated from: http://www.scb.se/Statistik/_Publikationer/OE0903_2014A01_BR_OE06BR1401.pdf http://www.scb.se/Statistik/_Publikationer/OE0903_2014A01_BR... Different measures of government size, 2012. Percentage of GDP. Public authorities' share of the total value added: 18% Public sector consumption and investments: 30% Employed in the public sector: 28% Employed in the public sector and public enterprises 33% General government expenditure 51% General government revenue 50%
- Skinney 11y agoI'm Norwegian, and here we have two parties who advocate a six-hour workday. One of the parties wants a six-hour workday with pay compensation, meaning we still pay them for eight-hour days even if they only work six-hours. I'm not sure this is the case in Sweden. Even if it isn't, a six-hour day means people work less, meaning you probably need to hire more people (increased productivity doesn't help in the healthcare, police or fire sector, you still need people at work) which means higher pensions and other benefits.
- xlm1717 11y agoYes, this makes sense. For the public sector it would necessarily incur extra salary costs.
- zeckalpha 11y agoIncome taxes on hourly wages would go down.
- e12e 11y agoNormally 6-hour work-day efforts imply equal pay, so taxation might stay the same, or go up, not necessarily down, even for hourly wages. For hourly wages, that'd mean a ~20% pay high per hour.
- Scarblac 11y agoWages would also go down, maybe not proportionally but people do not do the exact same amount of work in 6 hours as in 8 hours. To make up for the lost production, some more people would be hired who are currently out of a job. Average wage goes down, but more people have jobs. However, due to progressive tax system, that leads so less tax being earned (two people earning $x each pay less than one person who earns $2x and another who earns nothing).